Alphabet Inc completed the issuance of ¥576.5 billion (approximately US$3.6 billion) of yen-denominated bonds on May 14, setting a record for the largest yen bond issuance ever by a foreign company [1, 2, 3]. The offering included ¥200.5 billion of 5-year bonds priced at a yield of 50 basis points over mid-swaps, along with six additional tranches [1, 4, 3].
The 10-year portion of the issuance carries a coupon rate of 3.189%, notably higher than the 2.67% yield on the Japanese government 10-year bond, reflecting strong investor appetite amid recent changes in Bank of Japan policy [1]. Taketoshi Tsuchiya, president of Fujiwara Capital Co., said Japanese investors remain "yield-hungry" and willing to buy bonds from major names like Alphabet even as U.S. investors show signs of fatigue [1].
This issuance is part of Alphabet's recent $60 billion borrowing surge over the past four months, supporting an increased capital expenditure forecast now as high as $190 billion — nearly double its 2025 spending level [1, 4].
Yen bond sales by non-Japanese issuers have jumped more than 280% this year to reach ¥1.6 trillion, indicating growing foreign borrowing in the Japanese market [1, 4].
Alphabet's record issuance underscores rising demand from Japanese investors seeking yield in the evolving bond market. The company’s funding efforts will continue to support its expanding capital investment plans.
No further bond issuances by Alphabet have been announced since this record sale on May 14.
