Toyota Finance Corp. priced a ¥100 billion ($629 million) bond sale with coupons reaching levels not seen since the company's 1999 debut. The five-year notes carry a 2.287% coupon, marking the highest rate for Toyota Finance's yen-denominated bonds in over two decades. Rising yields on Japanese government bonds continue pushing corporate funding costs higher across the market.

The deal includes three tranches: ¥42 billion of two-year notes at 1.654%, ¥16.5 billion of three-year debt at 1.876%, and ¥41.5 billion of five-year bonds at 2.287%. Lead manager Daiwa Securities Co. handled the pricing. The 2.287% coupon stands as the steepest since 1999, reflecting how quickly market conditions have shifted for Japanese corporates.

Higher borrowing costs signal tighter monetary conditions in Japan, where the Bank of Japan's yield curve control policies face pressure. For Toyota Motor Corp., these elevated coupons represent a significant increase from recent debt issuances, potentially impacting future financing strategies. The bond sale demonstrates how rising JGB yields are reshaping corporate funding dynamics across Asia's largest economy.