TOKYO: Japanese electronics giant Panasonic Corp. on Thursday issued bonds totalling 500 billion yen ($6.1 billion), the biggest-ever corporate bond issuance by a non-financial Japanese firm. It issued the straight bonds in three trenches, 150 billion yen of two-year bonds, 200 billion yen of five-year bonds and 150 billion yen of seven-year bonds, according to Dow Jones Newswires. The firm referred to the planned issuance in February when it announced its earnings for the third quarter of its financial year. At the time the company said it wanted to pay back short-term debt. Panasonic is to convert subsidiary Panasonic Electric Works and Sanyo into wholly owned units in April, with Sanyo shareholders expected to approve the 810 billion yen move at a general meeting Friday. On Thursday, Standard & Poor's assigned an A+ rating on the bonds. The agency said it expected "Panasonic will strengthen its business through collaboration with Sanyo Electric Co. Ltd. and Panasonic Electric Works Co. Ltd. as well as its proven ability to strengthen earnings in the face of unfavourable business conditions." Since buying a controlling stake in its smaller rival in 2009, Panasonic gained access to Sanyo's coveted environmental technologies such as rechargeable batteries, seen as a promising sector given growing concerns about global warming. The company now aims to shift its focus from home electronics, which faces increasing competition and shrinking margins, to the fast-growing and lucrative renewable energy and energy conservation business. Panasonic returned to the black for the nine months to December thanks to brisk sales and cost-cutting efforts that helped offset the yen's strength. However, the company saw a six percent slide in third quarter operating profit amid intense price competition between rivals and maintained a cautious outlook for the remainder of the year as it left its forecast unchanged.
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