Some Japanese firms are holding off from issuing corporate bonds amid the financial market instability triggered by the Trump administration’s tariff measures.
Major beer maker Asahi Group Holdings deferred issuance of bonds worth about 50 billion yen, or nearly 350 million dollars.
Nissin Foods Holdings has postponed issuing nearly 280 million dollars-worth of corporate debt.
Meanwhile, another beverage giant Suntory Holdings has deferred issuance of about 70 million dollars in subordinated bonds.
All three companies say they have not decided on new issuance dates.
The yield on the 10-year Japanese government bond, which serves as a benchmark for corporate bond yields, has seen wide fluctuations.
That is believed to be a factor behind the decision of Japanese firms to hold off raising funds by issuing new bonds.
Otsu Dai, an expert in corporate bonds at Daiwa Securities, says investors do not want to take risks.
He said “Companies have postponed their issuance of bonds from the viewpoint that, if you think about business on an annual basis, it would be better to communicate with investors after things have calmed down a bit.”