Itochu is preparing to issue up to ?50 billion ($334 million) in yen bonds and is also weighing dollar notes for the first time in about five years, potentially bringing total issuance this fiscal year to more than ?100 billion.

The Japanese trading house, backed by Warren Buffett¡¯s Berkshire Hathaway, is planning to issue between ?30 billion and ?50 billion in local currency debt and weighing a $500 million bond, said Kenichiro Soma, executive officer and general manager of finance. The company has already raised ?71.2 billion this fiscal year. If completed, the sales would mark its biggest annual issuance since 1995.

Itochu capped growth investment at ?1 trillion for a second straight year but is broadening its funding sources after a 2023 Moody¡¯s upgrade eased the shift from bank loans to bonds.

¡°About 10 years ago, we were active in bond sales, but then we pulled back,¡± Soma said in an interview at its Tokyo headquarters on Sept. 19. ¡°Now, it¡¯s ¡®no growth without investment.¡¯ We¡¯re managing with a view to increasing interest-bearing debt.¡±

Still, he said the timing and size of offerings in both currencies will depend on market conditions, and no final decisions have been made.

The push comes as tighter credit spreads and expectations for U.S. rate cuts fuel demand for investment-grade bonds, with premiums over government debt near the lowest since 2007. At the same time, Japanese companies are under pressure from activist investors to boost efficiency, adding to the impetus to diversify funding sources.

Bonds account for about 5% of Itochu¡¯s interest-bearing liabilities, far below peers. Soma aims to gradually lift that ratio toward roughly 20%, which is around the level of firms such as Mitsubishi Corp.

Itochu this month also issued Japan¡¯s first orange bond, as they are known, which restricts proceeds to projects supporting gender equality and sexual minorities. Strong demand lifted the deal to ?15.2 billion from an initial ?10 billion, with Wayo Women¡¯s University among investors.