![Rakuten Group Inc. Prices $2 Billion Junk Bond Due to High Demand](https://static.myboardtoday.com/app/fdcb87e3-3d43-4526-9db4-23dcf1b9f7ce/c8fbad22-0db6-4140-91ec-e94fa337bc21_-_300982d2-114a-4c2f-aff8-c453f4f7a34f-cover.webp)
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.