The era of nearly free money in Japan is over—and the nation’s companies are responding with unprecedented vigor on the global stage. According to Bloomberg, Japanese firms have raised $132 billion so far this year in foreign-currency bond and loan deals arranged by banks, a 56% jump from the same period in 2024. For the first time ever, annual overseas note issuance is on track to surpass debt sales in yen, marking a profound shift in how Japanese corporations finance themselves.
This surge reflects the country’s emergence from decades of deflation and economic stagnation. With domestic borrowing costs climbing to their highest levels since the late 2000s, companies are increasingly turning to international markets for cheaper funding. The Bank of Japan’s recent decision to hold its benchmark interest rate steady has done little to ease the pressure, following three rate hikes since March 2024. Meanwhile, the AI boom, coupled with a wave of global dealmaking, has emboldened Japanese firms to spend, acquire, and expand abroad like never before.
“We’ve specifically increased staffing for foreign bonds and are strengthening that area,” said Kazuhiro Yamauchi, head of global debt capital markets at Mizuho Securities, Japan’s top corporate bond manager, in comments to Bloomberg. “Issuers that previously had no interest are also starting to want to learn more about them.” The shift has made Japan the biggest source of dollar bonds in the Asia-Pacific region, overtaking China, which once dominated global issuance through its property developers before the sector’s debt crisis shut them out of markets.
Japanese borrowers now account for roughly 28% of all dollar and euro bond issuance in Asia this year, compared with just 14% five years ago, Bloomberg data shows. In contrast, China’s share has plunged to 18% from nearly half of the region’s total in 2019. Japan’s rising prominence has inspired global financial institutions to deepen their presence in Tokyo, where Bloomberg will host its Global Credit Forum on November 5, featuring top financial policymakers and corporate leaders.
From blue-chip giants to high-yield issuers, Japanese companies are seizing global credit opportunities. SoftBank Group’s $15 billion bridge loan earlier this year to fund AI investments stands out as one of the country’s largest borrowings. NTT Inc., once the world’s most valuable company during Japan’s 1980s boom, sold a record $17.7 billion in dollar and euro bonds in July to take private its data subsidiary NTT Data, an AI-driven data center powerhouse. These mega-deals highlight how Japan’s corporate resurgence is being fueled by technology and cross-border expansion.
Even speculative-grade Japanese borrowers are making waves. Rakuten Group, SoftBank, and Nissan Motor Co. have all issued billions in foreign-currency junk-rated debt, accounting for about $14 billion in such sales so far this year, Bloomberg reports. Yet most of the overseas issuance remains firmly investment grade—over 70% rated “A” or higher—pushing the overall quality of Asian dollar bonds to new highs. JPMorgan’s 2023 launch of a bond index that includes Japan and Australia further underscores how Asian credit has matured from an emerging-market asset class into a mainstream investment destination.
The shift is also drawing private credit players such as KKR & Co., which are competing with banks to originate loans in Japan. Mergers and acquisitions have exploded, too, with pending or completed deals involving Japanese firms rising 129% to $262 billion this year, led by SoftBank’s AI bets and NTT Data’s privatization, according to Bloomberg data. The Tokyo Stock Exchange’s campaign for stronger shareholder returns has turned Japan into a hotbed for takeovers and buyouts.
For investors, Japanese corporate debt is increasingly attractive. While yen-denominated bonds have fallen 0.5% this year, Asian and U.S. investment-grade dollar securities have gained more than 7%, according to Bloomberg indexes. “Within Japan, we like the diversity in terms of issuers,” said Omar Slim, co-head of Asia fixed income at PineBridge Investments. “If you are an Asia-Pacific investor, you have to look at Japan.”
As Bloomberg’s reporting makes clear, Japan’s corporate giants are no longer content to sit on cash piles built during the deflationary decades. Armed with AI ambitions, global ambitions, and rising confidence, they are redrawing the map of global finance—one bond sale at a time.
