Rakuten Group Inc. is preparing a $500 million bond sale, capitalizing on near 17-year lows in high-yield dollar funding costs. The Japanese e-commerce giant is reportedly considering issuing hybrid perpetual notes callable after five years, marking its second dollar bond offering in 2024.
Currently rated BB by S&P Global Ratings, Rakuten benefits from a favorable debt market, as the Bloomberg US high-yield corporate index highlights the lowest funding costs since 2007. Falling US Treasury yields, driven by expectations of Federal Reserve rate cuts, have created an attractive environment for issuers.
This move aligns with Rakuten’s broader financing strategies while Japan’s tighter monetary policies contrast with easing trends in other major economies.