AI Financing Race Spreads to Japan as Yen Bond Issuance Hits $16 Billion Record

on November 2, according to Nikkei, as AI hyperscale cloud service providers ignite a global financing boom, overseas enterprises and institutions are beginning to seek funding from Japanese investors. Statistics from Daiwa Securities show that from April to September this year, the volume of yen-denominated bonds issued by foreign entities reached a record high. The total amount of yen bonds issued by foreign institutions in Japan and overseas amounted to approximately 2.5 trillion yen (around $15.9 billion), representing a year-on-year increase of 160%, surpassing the previous record of 2.1 trillion yen set between October 2018 and March 2019.

Alphabet, Google's parent company, issued its first yen-denominated bonds in May, totaling 576.5 billion yen and setting a new record. The company is expected to use these funds for large-scale investments in AI infrastructure. A spokesperson from a major brokerage firm stated: "Most overseas issuers will convert the funds raised through yen-denominated bonds into US dollars, euros, and other currencies." (Jin10)