ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailMenu BurgerPositive ArrowIcon PrintIcon SearchSite TitleTitle ChevronIcon Twitter
Business deals

Takeda readies $4.5bn bond sale to defend credit rating

Hybrid debt will shore up drugmaker's balance sheet after Shire deal

Japan's Takeda Pharmaceutical closed the $62 billion purchase of Irish drugmaker Shire on Jan. 8.

TOKYO -- Takeda Pharmaceutical will issue up to 500 billion yen ($4.53 billion) in bonds to replace short-term loans used in financing last month's purchase of Irish drug developer Shire, the Japanese company said Friday.

Half the funds raised will count toward Takeda's capital as measured by S&P Global Ratings and Japan Credit Rating Agency, helping strengthen the company's balance sheet and prevent credit rating downgrades.

S&P's long-term issuer credit rating on Takeda stands at BBB+, one step above speculative grade.

The hybrid debt sale, which will take place as early as April, is expected to be one of the largest of its kind ever in Japan. The coupon rate and other terms have yet to be decided.

To finance its $62 billion acquisition of Shire, Japan's largest drugmaker issued dollar- and euro-backed straight bonds in overseas markets totaling roughly $14 billion.

The upcoming hybrid bonds will carry a 60-year maturity, with early redemption open five years and four months after the issue. Mitsubishi UFJ Morgan Stanley Securities, SMBC Nikko Securities and Mizuho Securities serve as the lead underwriters of the float.

If the company is unable to raise 500 billion yen worth in the bond sale, the remainder will be covered by subordinated loans made available through an earlier deal with domestic banks.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Get Unlimited access

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends October 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to the Nikkei Asian Review has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media