Japan Marks Lowest-Ever Coupon on Corporate Bond in Toyota Sale

  • Toyota Finance sells 20 billion yen of notes at 0.001%
  • Average Japanese corporate bond yields drop to 0.17%: BOA

A Toyota Motor Corp. unit sold yen bonds Tuesday with the lowest coupon ever for a Japanese company, reflecting the plunge in borrowing costs as the central bank pushes ahead with unprecedented monetary stimulus.

Toyota Finance Corp. issued 20 billion yen ($186 million) of notes at a yield of 0.001 percent, according to a filing with the nation’s Finance Ministry. That’s the lowest coupon ever for a regular bond by a domestic company that isn’t backed by the government, according to data compiled by Bloomberg.

The Bank of Japan has sent yields on Japanese government bonds below zero for notes out to 10 years since adopting a negative-rate policy in January, increasing demand for corporate debt. Average yields on Japanese company bonds dropped to 0.17 percent on Monday from 0.33 percent a year earlier, according to Bank of America Merrill Lynch data.

Toyota, the world’s largest automaker, last month sold 60 billion yen of debt including 20-year bonds paying a yield of 0.343 percent.

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