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

KDDI to raise up to $800m in bond sale ahead of 5G rollout

Japanese telecom seeks to lock in low interest rates as investments continue

Japanese telecom KDDI is experimenting with 5G-powered apps like this one, which gives baseball fans sitting in stadium seats close-up views of the batter. (Photo by Mao Kawano)

TOKYO -- Japanese telecom company KDDI is preparing to issue up to 90 billion yen ($797 million) in medium- to long-term bonds to raise funds for investments like building a 5G network.

This will likely mark one of KDDI's biggest bond sales. The coupon rate and other terms will be set in November. 

KDDI, known for its au mobile phone brand, plans to use the money raised for capital spending and debt repayment. With global interest rates on the rise, the company is taking advantage of a low-cost fundraising opportunity while it still can.

KDDI is in the midst of investing 500 billion yen over three years in areas beyond its mainstay domestic wireless business, which faces low growth prospects and will see more competition when e-commerce group Rakuten enters the market next year.

The telecom recently bought the operator of KidZania learning centers in Japan. Earlier this year, it acquired Tokyo-based English conversation school owner Aeon.

In its core business, KDDI is preparing for the start of ultrafast 5G wireless service in Japan in the next one to two years.

The upcoming bond sale is likely to consist of debt maturing in five to 10 years. Daiwa Securities, Mizuho Securities, Mitsubishi UFJ Morgan Stanley Securities and Nomura Securities have been named as lead managers on the offering.

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 June 30th

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