Sony Group Corp. is preparing to sell dollar-denominated bonds in the US investment-grade market for the first time in nearly three decades. The company has mandated Bank of America Corp. and Morgan Stanley to initiate calls with debt investors, which began on Monday, June 22, 2026. A two-tranche note offering, with maturities of five and 10 years, is expected to follow this engagement with investors. This move marks a significant comeback for Sony, which last tapped the US bond market in 1998, raising $1.5 billion, back when it was still marketing the original PlayStation. A former US unit of Sony did tap the market in 2001.
This bond offering is part of a broader surge in high-grade bond sales in the US, as companies aim to lock in historically tight credit spreads amid expectations of potential interest rate hikes by the Federal Reserve. Japanese companies, in particular, find dollar-denominated debt more appealing now due to policy tightening by the Bank of Japan, which has pushed its benchmark interest rate to its highest level since 1995. Many firms, like auto-parts maker Denso, which sold a $500 million investment-grade US dollar note, and Mitsubishi, which raised $1 billion earlier this month, are also diversifying their funding by selling euro-denominated notes.
Sony's Securities and Exchange Commission filing indicates the cash raised will be used for general corporate purposes. The company recently spun off its insurance and banking firm last year to concentrate on its core entertainment businesses, encompassing games, music, and films. S&P Global Ratings upgraded Sony to A+ in March, four notches below AAA, citing a strong outlook for earnings and cash flows. The new bonds are expected to receive ratings of A2 from Moody’s Ratings and A+ from S&P.
