In the morning cafeteriaUCC Black sugar freeWhile drinking a can of coffee, I suddenly had a question on my mind.
Recently, it seems that the fundraising methods of Japanese companies have been changing somewhat.
In 2025, the amount of funds raised by Japanese companies from the capital markets will beApproximately 21 trillion yenThis was apparently a very high level even by past standards.
The underlying reason is "rising interest rates."
A growing number of companies are choosing alternative methods, such as stocks, over borrowing from banks.
Today I was thinking about what kind of atmosphere this trend is starting to create in the world of work.
background
In recent years, long-term interest rates in Japan have been on an upward trend.
For businesses, interest rates are, in a sense, "rental fees for money."
The higher the interest rate, the heavier the cost of borrowing becomes.
In fact, the government bond yield, which serves as an indicator of long-term interest rates,This is the highest level in approximately 27 years.There were times when it rose to that level.
In this environment, companies should not rely solely on bank loans or corporate bonds,
It appears they are pursuing a "diversification of fundraising" strategy, combining stock issuance and convertible bonds, among other methods.
In other words, corporate fundraising is gradually shifting away from being "debt-centric."
It is expanding to forms that utilize capital markets.That seems to be the case.
By issuing new shares or convertible bonds (CBs),
This can help reduce the burden of interest payments and secure long-term funds.
In a period of rising interest rates, these kinds of measures naturally become more common.
In the world of finance, this is, in a sense, a very rational trend.
Specific facts
For example, Japanese companiesCorporate bond issuance is at an all-time high.It became so.
Furthermore, there are moves to reduce interest burdens by using convertible bonds.
Depending on the company,M&A and capital investmentIt seems that its use in this context is increasing.
In fact, the total value of M&A deals involving Japanese companies isApproximately 36 trillion yenAnd it was the highest ever.
In other words, companies
"Secure funds before interest rates rise."
"Prepare for growth investments"
They may be starting to move forward with that kind of idea.
However, issuing new shares can sometimes lead to a dilution of shareholder value.
That is why companies shouldWhy is that funding necessary?This requires strong explanatory skills.
This is perhaps where the management skills of each listed company will be put to the test.
Summary
When interest rates change, corporate financing methods also quietly shift.
By observing the flow of money, we can get a glimpse of how businesses will change in the future.
A delicious canned coffee helped clear my head again today.
Well, it's almost time to head to work this morning.
