Japanese companies are rapidly increasing their dollar bond sales, with issuances rising by 60% to a three-year high of $32.6 billion since April, according to Bloomberg data. This surge outpaces other major economies like Germany, the UK, and Canada, as Japanese firms target international investors.
The US Federal Reserve’s monetary easing and Japan’s contrasting policies have made dollar debt more appealing, especially with lower borrowing costs. Kyushu Electric Power Co., for example, sold dollar bonds for the first time in 27 years, joining other Japanese companies such as Meiji Yasuda Life Insurance Co.
Japanese firms benefit from raising funds in dollars to support overseas expansion, given Japan’s aging population and shrinking domestic market. With interest rate cuts lowering yield premiums, this trend is expected to continue as companies explore growth opportunities abroad.