Warren Buffett's Berkshire Hathaway Reportedly Raises $1.9B Through Largest Samurai Bond Sale In 5 Years

Berkshire Hathaway BRK BRK has successfully secured 281.8 billion yen, approximately $1.9 billion, via a yen-denominated bond offering. This represents the company’s largest bond sale in Japan’s currency in five years.

What Happened: This issuance of Samurai bonds highlights Warren Buffett‘s increasing interest in Japan’s financial markets. Over the past four years, Berkshire Hathaway has invested in Japan’s top five trading houses, and this bond sale is part of its strategy to expand its exposure to Japanese assets, as per a term sheet reviewed by Reuters on Thursday.

According to a filing with the U.S. Securities and Exchange Commission, Berkshire Hathaway will use the funds for general corporate purposes. The company initially announced plans to invest in Japan’s trading houses in 2020, with a goal to hold these stakes long-term and potentially increase ownership to 9.9%.

Berkshire did not immediately respond to Benzinga's request for comment.

This year, Berkshire Hathaway has engaged in significant yen bond sales, with the latest issue featuring bonds with maturities ranging from 3 to 30 years. The largest tranche, a 3-year bond, raised 155.4 billion yen, while the 5-year bond secured 58 billion yen.

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Why It Matters: Buffett’s strategic move into Japan’s financial markets aligns with his long-term investment philosophy. In a recent letter to investors, Buffett emphasized the importance of companies that consistently increase dividends. This approach has contributed to Berkshire Hathaway’s impressive returns.

Despite global market volatility, Berkshire Hathaway’s Japanese investments have shown resilience. In early August, the Nikkei 225 index experienced a significant drop but managed to recover most of its losses. This underscores the strength of Buffett’s investments in Japan’s trading giants.

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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote