IPhone Taking Nikon Share Masked in Bond Offering: Japan Credit

Prime Minister Shinzo Abe’s weakening of the yen is capping Nikon Corp.’s borrowing costs even as camera shipments shrink due to competition from devices such as Apple Inc.’s iPhone.

Nikon raised 20 billion yen ($194 million) in a bond sale on March 7 that included 10-year notes priced at a 24 basis point premium over government debt. That’s two basis points more than the record low in its previous offering of similar-maturity securities in January 2011. Japanese borrowers pay an average spread of 19 basis points for debentures due in seven years to a decade, while U.S. corporates offer 148, Bank of America Merrill Lynch indexes show.