By Ben Edwards
Warren Buffett's Berkshire Hathaway raised to raise EUR3 billion
($3.3 billion) on Thursday from its first-ever debt sale in
Europe.
The deal is the latest in a surge of U.S. companies crossing the
Atlantic to sell bonds in euros, taking advantage of the region's
slender borrowing costs.
Berkshire Hathaway sold three bonds that will mature in eight,
12 and 20 years. Those bonds priced to yield 0.8%, 1.24% and
1.648%, respectively, all close to record lows for those
maturities.
Thursday's bond sale--along with a EUR500 million offering from
Whirlpool Corp.--will push U.S. euro-denominated bond issuance to
about EUR30 billion this year, the fastest pace since the financial
crisis, Dealogic data show.
Borrowing costs have continued to tumble in the eurozone as the
region's central bank prepares to pull the trigger on a massive
bond-buying program. The average yield for euro-denominated
corporate bonds was a near-record low 1.08% at Wednesday's close,
according to a Markit index.
Bank of America Merrill Lynch, Deutsche Bank, Goldman Sachs and
Wells Fargo were the banks managing Thursday's bond sale.
Write to Ben Edwards at ben.edwards@wsj.com
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