Buffett’s Berkshire Hathaway mandates banks for yen bond deal

WARREN Buffett’s Berkshire Hathaway is planning to sell yen bonds in the global markets, after the billionaire revealed that the firm is looking to increase ownership in Japan’s five main trading houses.

The US conglomerate, which has been a regular issuer of yen bonds since it first tapped the market in 2019, mandated BofA Securities and Mizuho Securities for a potential benchmark SEC-registered bond offering, according to a person familiar with the matter. 

The deal may come in the near future, subject to market conditions. Berkshire in October sold its biggest-ever yen bond since its inaugural offering. 

The potential yen bond deal comes after Buffett’s annual letter to shareholders in February signalled plans to increase holdings in the sector.

The veteran investor said in the letter that he had originally agreed to keep Berkshire’s stake below 10 per cent, but the companies have agreed to relax the ceiling “moderately” as it approaches the limit. BLOOMBERG