Rakuten Group Inc. Prices $2 Billion Junk Bond Due to High Demand

By
Lorenzo Bianchi
1 min read

What happened:

Rakuten Group Inc. successfully priced a $2 billion junk bond, increasing the size of the offering by 60% due to high demand from investors. The bond was priced at a yield of 9.875%.

Key Takeaways:

  • Rakuten Group Inc. priced a $2 billion junk bond after increasing the offering by 60% due to strong demand.
  • The bond was priced to yield 9.875%.
  • The issuer increased the five-year deal from $1.25 billion after demand for the offering surpassed $8 billion.

Analysis:

This substantial increase in the size of the offering indicates strong investor confidence in Rakuten Group Inc. The high demand for the bond suggests a positive perception of the company's creditworthiness and future prospects.

Do You Know?

  • Junk bonds are high-yield, high-risk bonds issued by companies with lower credit ratings, offering higher returns but also carrying more risk for investors.
This article is submitted by our user under the News Submission Rules and Guidelines.The cover photo is computer generated art for illustrative purposes only; not indicative of factual content.

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