Rakuten Plans Return to Dollar Bond Market With Hybrid Notes
- Company plans sale of perpetual notes callable in five years
- High-yield bond spreads are near the lowest levels since 2007
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Rakuten Group Inc. hired banks for a $500 million bond sale at a time when high-yield dollar note funding costs are near 17-year lows.
The Japanese e-commerce firm is considering the sale of hybrid perpetual notes that can be called after five years, according to a person familiar with the matter. Rakuten is turning to the dollar bond market for the third time this year after pricing a combined $3.8 billion of such debt in the first half, according to data compiled by Bloomberg. Rakuten’s planned dollar bond sale follows its bond offering in the currency in April, the data showed.