Kubota issues first dollar bonds in 31 years as U.S. business grows

Japan machinery maker diversifies funding with eye on financial risks

Kubota's finance arm offers loans to buyers of its equipment in North America. (Photo courtesy of Kubota)

NARUSHI NAKAI, Nikkei staff writer

June 7, 2023 02:35 JST

TOKYO -- Japanese machinery maker Kubota has issued $500 million in dollar-denominated bonds, its first since 1992, to meet its increasing capital needs in the U.S. as sales of its farm and construction equipment grow.

The three-year debt issued by Kubota Credit U.S.A. in late May, guaranteed by its Japanese parent, carries a 4.958% coupon and an A rating from S&P Global. Morgan Stanley was among the lead underwriters.