Berkshire Hathaway (BRK.B) is preparing for its second yen-denominated bond offering of 2026, reinforcing its strategy of tapping Japan’s debt market approximately twice a year. This approach allows the conglomerate to benefit from low borrowing costs while funding investments in Japanese assets and managing currency risks.
The planned issuance follows a slowdown in domestic corporate bond sales in Japan, with credit spreads widening from 45.67 basis points in May to 52.37 basis points in November. In April, Berkshire raised ¥272.3 billion ($1.7 billion) through a six-tranche yen bond offering, with maturities spanning three to 30 years.
Berkshire’s latest financing move underscores its confidence in Japan, particularly its investments in five major trading houses: Itochu, Marubeni, Mitsubishi, Mitsui, and Sumitomo. Since 2019, Berkshire has expanded its holdings, with the combined market value of these stakes reaching $35.4 billion by the end of 2025, against an aggregate cost of $15.4 billion.
According to Berkshire’s 2025 annual report, its yen-denominated borrowings matched the cost basis of its Japanese investments, carrying an average interest rate of 1.2% and a weighted-average remaining life of approximately 5.75 years. By aligning yen liabilities with yen assets, Berkshire mitigates foreign-exchange risks, highlighting its disciplined capital allocation and strong credit profile.
Other insurers, such as MetLife (MET) and Aflac (AFL), have also established significant presences in Japan. MetLife’s acquisition of Alico in 2010 positioned it as a leading force in Japan’s life insurance sector, while Aflac has invested in cancer care, HealthTech, and InsurTech startups through Aflac Ventures Japan.
Shares of BRK.B have gained 14.5% year to date, outperforming the industry. The stock trades at a price-to-book value ratio of 1.64, below the industry average of 18.55. The Zacks Consensus Estimate for BRK.B’s fourth-quarter 2026 EPS and first-quarter 2027 EPS has seen no movement in the last 30 days, with year-over-year increases expected for both 2026 and 2027 revenues and EPS.