Rakuten Group Inc. has completed its largest-ever yen bond sale, raising a record ¥400 billion ($2.5 billion) in a deal that highlights strong retail investor demand. The bonds, with a 5.5-year maturity, were priced at a spread of 200 basis points over the benchmark 10-year Japanese government bond and carry a 4.37% coupon rate.
The sale included ¥360 billion allocated to individual investors and ¥40 billion to institutional investors, underscoring the growing interest from retail participants in the bond market. The transaction reflects Rakuten's strategic move to tap into the expanding pool of individual investors seeking higher-yielding debt instruments.
The bond offering comes amid a broader trend of increased retail involvement in financial markets, particularly in Japan, where low interest rates have pushed investors to explore alternative investment options. Rakuten's ability to secure such a substantial amount from retail investors signals confidence in the company's creditworthiness and growth prospects.