Sony Group Corp plans to issue two tranches of senior fixed-rate US dollar bonds totaling about $1 billion. The bonds will have maturities of five and ten years, marking Sony’s first US dollar bond sale since 1998 when it raised $1.5 billion [1, 2, 3, 4, 5].
The five-year notes are expected to carry a yield spread of roughly 70 basis points over comparable US Treasuries, while the ten-year notes could carry spreads near 90 basis points, reflecting market conditions and Sony’s credit profile [1, 6, 5]. Underwriters for the deal are Bank of America and Morgan Stanley, which held investor calls on Monday, June 22 [1, 3, 4, 5]. Pricing of the bonds may take place later on Tuesday, June 23 [1, 6, 5].
Proceeds from the bond sale will be used for general corporate purposes as Sony continues its strategic focus away from traditional electronics toward entertainment sectors like games, music, and films. Sony spun off its insurance and banking unit last year to streamline operations around these areas [1, 3, 4].
Japanese firms have found dollar debt issuance increasingly attractive amid the Bank of Japan’s policy tightening and relatively higher US interest rates. Other recent Japanese issuers of dollar bonds include Denso, which raised $500 million, and Mitsubishi, which issued $1 billion [1, 3, 4]. Meanwhile, SpaceX plans to raise at least $20 billion in US dollar bonds this week, underscoring active global dollar debt markets [1, 3, 4].
Sony’s US dollar bond announcement coincided with a 4% drop in its US ADR share price on Monday and a slight decline in its Tokyo shares on Tuesday, reflecting investor reactions [5]. The company’s shift toward a diversified entertainment platform has increased capital needs and flexibility for global funding [5].
Bank of America and Morgan Stanley held investor calls on June 22 to promote the offering. The bond sale pricing was expected later on June 23, with final terms subject to market conditions and investor demand [1, 6, 5].
