Japan Inc takes to perp loans

摘要

Hybrid financing is becoming all the rage in Japan, with trading house marubeni corp and machine tool maker DMG Mori the latest borrowers to agree debut perpetual loans, enabling them to lock in long-term funding amid a negative interest rate environment. Marubeni made its debut in the hybrid financing market last week with a ¥250bn (US$2.5bn) perp loan to bolster its balance sheet, while DMG Mori signed a ¥40bn perp borrowing on August 5 to refinance an acquisition loan that funded the purchase of its German partner last year.