Rakuten Sells Its Lowest-Yielding Dollar Bonds Since 2021
- Deal was priced to yield 8.125%, after 8.375% area price talk
- US junk bond spreads touched lowest since 2007 in November
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Rakuten Group Inc. sold a $550 million junk-rated global dollar bond at the lowest cost in over three years, as signs emerged of increasing investor confidence in the Japanese e-commerce firm’s efforts to reverse years of losses.
The online-mall operator priced subordinated notes that yield 8.125%, according to a person with knowledge of the matter. That’s the lowest pricing for a US-currency note from Rakuten since 2021, when the company lost investment-grade status at S&P Global Ratings, according to data compiled by Bloomberg. Initial price talk for the deal was around 8.375%, the person, who asked not to be identified as the details are private, said.