Rakuten Group Inc. priced a local bond at the year’s highest coupon of 4.691%, which helped build a strong order book driven particularly by overseas investors. The deal gave Japan’s credit market the clearest sign yet of the impact of rising government bond yields on corporate borrowing costs.
The company sold a ¥82 billion ($546 million) perpetual subordinated bond, which is callable after five years at a spread of 350 basis points over Japanese government bonds. Total demand topped ¥500 billion, including more than ¥120 billion from overseas investors, according to lead manager Daiwa Securities Co.