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Sony plans first US dollar bond sale in 28 years amid global funding shift
Japanese giant eyes five and 10-year notes as overseas borrowing gains appeal
TOKYO: Sony is tuning up for a return to the US bond market after nearly three decades, as the Japanese entertainment and technology giant prepares its first US dollar-denominated bond sale since 1998.
According to a report by Bloomberg, Sony Group Corporation has appointed Bank of America Corporation and Morgan Stanley to arrange investor calls that began on Monday ahead of a planned two-tranche bond offering. The proposed notes are expected to carry maturities of five and 10 years.
The company disclosed in a filing with the US Securities and Exchange Commission that proceeds from the offering will be used for general corporate purposes.
The move marks Sony’s first direct visit to the US investment-grade bond market since 1998, when it raised $1.5 billion. A former US subsidiary of the Tokyo-headquartered company later accessed the market in 2001, according to Bloomberg data.
Sony’s return comes as a growing number of companies rush to secure funding in the US debt market while credit spreads remain near historic lows. Investors are also closely watching expectations that the Federal Reserve could begin raising interest rates, prompting issuers to lock in financing before borrowing costs potentially climb higher.
For Japanese corporations, overseas borrowing has become increasingly attractive. Policy tightening by the Bank of Japan has pushed benchmark interest rates to their highest levels since 1995, encouraging companies to diversify funding sources through dollar and euro-denominated debt.
The broader trend is already visible across corporate Japan. Earlier this week, Denso Corporation sold a $500 million investment-grade dollar bond, while Mitsubishi Corporation raised $1 billion through a similar offering. In Europe, Toyota Motor Corporation priced €1 billion, equivalent to approximately $1.14 billion, in euro-denominated debt.
The company has also been reshaping its business. Last year, Sony spun off its insurance and banking operations to sharpen its focus on entertainment, including gaming, music and film businesses. That strategy appears to be resonating with rating agencies. In March, S&P Global Ratings upgraded Sony’s credit rating to A+, citing expectations of strong earnings and cash flow generation.
According to the Bloomberg report, the new bonds are expected to be rated A2 by Moody’s Ratings and A+ by S&P, placing them firmly within investment-grade territory.
As Sony prepares to re-enter a market it last tapped when the original PlayStation was still making headlines, the bond sale signals both confidence in its financial position and a broader shift among Japanese companies seeking fresh funding avenues in a changing global interest-rate environment.
