Berkshire Hathaway issues new senior notes in Japan

OMAHA, NE – Berkshire Hathaway Inc . (NYSE:BRKa) has issued a series of senior notes in Japan, raising a total of ¥90 billion (approximately $700 million), according to a regulatory filing with the Securities and Exchange Commission (SEC) on Thursday. The conglomerate, led by renowned investor Warren Buffett, has entered into an underwriting agreement with Merrill Lynch International and Mizuho (NYSE:MFG) Securities USA LLC.

The offering includes six tranches with varying maturities ranging from 2028 to 2055, and interest rates from 1.352% to 3.117%. Specifically, the notes are ¥48.6 billion of 1.352% senior notes due 2028, ¥19.5 billion of 1.593% senior notes due 2030, ¥3.5 billion of 1.797% senior notes due 2032, ¥9.1 billion of 2.090% senior notes due 2035, ¥6 billion of 2.492% senior notes due 2040, and ¥3.3 billion of 3.117% senior notes due 2055.

The debt issuance was conducted under an indenture dated January 31, 2025, between Berkshire Hathaway (NYSE:BRKb), Berkshire Hathaway Finance Corporation, and The Bank of New York Mellon (NYSE:BK) Trust Company, N.A. Officers’ certificates dated April 17, 2025, outline the specifics of each tranche of notes.

The proceeds from the notes are not specified in the filing, but companies typically use such funds for general corporate purposes, which may include refinancing existing debt, funding capital expenditures, or supporting acquisitions.

Berkshire Hathaway’s decision to issue debt in Japan could be seen as a strategic move to diversify its investor base and capitalize on lower borrowing costs in the Japanese bond market. The company’s financial strength and reputation likely contributed to the successful placement of the notes.

The SEC filing also includes exhibits such as the underwriting agreement, the officers’ certificates for each series of notes, and the opinion of Baker & McKenzie LLP regarding the legality of the notes.

Information regarding the notes and the indenture can be found in the prospectus supplement dated April 11, 2025, and in the base prospectus dated January 31, 2025, as part of the registration statement filed with the SEC.

This news comes as Berkshire Hathaway continues to maintain a robust balance sheet and actively manages its capital structure. The company’s Class A (NYSE:BRK.A) and Class B (NYSE:BRK.B) common stock are both listed on the New York Stock Exchange.

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