Sony will sell up to $1.5 Billion in bonds in Japan as it raises funds

 
A first in the company’s history, Sony will issue five-year bonds in June to retail investors. The company is making bold financial moves under the new CEO Kaz Hirai, with many of his decisions showing promise of Sony’s financial comeback.
 
The $1.5 billion that will be sold as five-year bonds are set to be issued on June 19, 2013 to local Japanese investors. Although it’s a first for Sony, the company has been on the slow track back-up the financial ladder ever since Hirai took control of the company. The money will be used to paying down Sony’s debt and for future investments. Hirai took the role of CEO for Sony in April 2012 and since then, Sony has reached its first profit in five years (fiscal period March 2013). That was mostly due to two distinct factors however, a weakening Yen and the liquidation of Sony’s high-profile landmark buildings.
 
This last Wednesday Sony outlined it’s procedures for the next three years. In the meeting Sony discussed its television and smartphone offerings, but the largest headline came from hedge fund manager Daniel Loeb, who is an investor with over $1 billion dollars invested in Sony alone (roughly 6.5 percent in Sony). Loeb wants Sony to sell off part of its entertainment division (one of Sony’s most valuable extensions) though the idea seems to have caused some tension with local Japanese investors who have not backed the financial plan at this time. Sony has not commented publicly on the matter.

Tags : Sony