The Strategist

Sony to place $ 1 billion in bonds

08/08/2016 - 16:06

The Japanese corporation Sony Corp. is planning to raise about $ 982 million through the issuance of corporate bonds for institutional investors. This is reported by Nikkei Asian Review.

Jamie McCall
Jamie McCall
According to the publication, the company will issue the securities in September. The conditions, the exact timing of coupon payments and options are not yet known. Sources say that it will be outright debt equity securities for a period of five and ten years.

At that, total issue of the company’s bonds would be increased to $ 1.47 billion, if there was a strong demand for it.

The publication said that the last time when Sony Corp. released such bonds was in 2013. The Japanese corporation raised $ 1.47 billion through the sale of securities to private investors.

Currently, major Japanese companies are engaged in the issue of bonds due to government-approved negative interest rate. Telecommunications and media corporation SoftBank is planning to sell hybrid bonds in the amount of $ 9.8 billion, and Panasonic has announced its plans to raise $ 3.955 billion due to the direct issue of bonds.

In March, the Japanese Ministry of Finance sold at auction a package of ten-year government bonds with a negative yield for the price 101.25 yen per security.

In late January, the Bank of Japan introduced a negative interest rate in order to deal with the stagnation and deflation as well as to promote its own policy of "quantitative easing". The authorities will buy bonds from investors, or charge them with a percentage for holding securities. Money earned this way will be reinvested in the economy to raise inflation, which was 0.2% in 2015.