UK markets closed
  • NIKKEI 225

    27,686.40
    -199.47 (-0.72%)
     
  • HANG SENG

    18,814.82
    -626.36 (-3.22%)
     
  • CRUDE OIL

    72.33
    -1.92 (-2.59%)
     
  • GOLD FUTURES

    1,798.60
    +16.20 (+0.91%)
     
  • DOW

    33,597.92
    +1.58 (+0.00%)
     
  • BTC-GBP

    13,783.00
    -201.79 (-1.44%)
     
  • CMC Crypto 200

    394.86
    -7.18 (-1.79%)
     
  • ^IXIC

    10,958.55
    -56.34 (-0.51%)
     
  • ^FTAS

    4,093.68
    -20.80 (-0.51%)
     

Aflac CFO Taps Japanese Debt Investors to Bring Down Interest Costs

NORTHAMPTON, MA / ACCESSWIRE / November 4, 2022 / By Nina Trentmann

Aflac Inc., a Columbus, Ga.-based insurer, generates about 70% of its revenue in Japan. The company, which sells supplemental health insurance to Japanese, and less so to U.S. consumers, recently sold roughly $1.21 billion in debt in Japan, taking advantage of the lower cost of capital there as the country's interest rates continue to be in negative territory. CFO Journal spoke to Chief Financial Officer Max Brodén about the considerations for the transaction and what Aflac has done with the proceeds. Edited excerpts follow.

WSJ: Aflac recently sold about $1.21 billion in debt to Japanese investors. What was the rationale?

Mr. Brodén: It's very natural to finance ourselves in yen because we generate a large percent of our earnings and profits [in Japan]. Our Japan operations hold $24.2 billion of investments. And we have $5 billion of forwards at the holding company that are long dollars and short yen. So those increase in value when the yen weakens and they decrease in value when the yen strengthens. What we're talking about here is the assets denominated in yen, where we then issue our bonds directly into the Japanese market and both the principal and the coupon is nominated in yen.

Continue reading the full article here

Aflac Incorporated, Friday, November 4, 2022, Press release picture
Aflac Incorporated, Friday, November 4, 2022, Press release picture

View additional multimedia and more ESG storytelling from Aflac Incorporated on 3blmedia.com.

Contact Info:
Spokesperson: Aflac Incorporated
Website: www.aflac.com
Email: info@3blmedia.com

SOURCE: Aflac Incorporated



View source version on accesswire.com:
https://www.accesswire.com/723941/Aflac-CFO-Taps-Japanese-Debt-Investors-to-Bring-Down-Interest-Costs