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A 1% Bond in Japan Is World’s Lowest-Coupon Junk Note in 2020

  • Junk-rated Aiful sold a yen note with coupon of just 1%
  • Unprecedented stimulus amid pandemic has pushed down yields
Aiful Corp. Stores As The Company To Sell First Non-investment Grade Yen Note in Public
Photographer: Akio Kon/Bloomberg
Updated on

Japanese consumer lender Aiful Corp. sold bonds with the world’s lowest coupon for a junk-rated issuer this year, as record low rates amid the pandemic redefine what high yield means.

Aiful priced 15 billion yen ($144 million) of 1.5-year notes with a coupon of 1%, according to Nomura Securities Co., one of the underwriters. It’s the second-ever junk bond offered publicly in Japan’s local credit market, after Aiful priced the first such security last year at a lower coupon at 0.99%.