(Bloomberg) -- Japanese corporate borrowers are selling bonds at a faster pace as speculation grows the Bank of Japan may raise interest rates again next month.
Japan’s major telecom firm KDDI Corp. sold ¥210 billion ($1.4 billion) of notes across four tranches on Friday, according to Daiwa Securities Co., one of the underwriters. Daiwa Securities Group Inc. and Panasonic Corp. were also among the eight issuers that sold bonds on Friday.
Issuers have accelerated their borrowing plans ahead of the BOJ’s next interest rate meeting on Dec. 18-19. Speculation about a December rate hike intensified this morning after data showed Tokyo inflation accelerated while other indicators pointed to the economy moving broadly in line with the central bank’s projections.
Market expectations for a rate hike have roughly doubled this month as Governor Kazuo Ueda reiterated borrowing costs will be raised if the economy performs in line with the central bank’s view.
KDDI’s bond sale came just after it raised ¥300 billion in July, bringing the total issuance tally for fiscal 2024 to ¥510 billion, an all time record for a single fiscal year for the company, Bloomberg-compiled data show. The company is planning to use the funds to finance the acquisition of shares in Lawson Inc. and other sustainable projects, according to a filing.
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