TOKYO -- Overseas companies and institutions are coming to tap Japanese investors' money as they join a global fundraising blitz triggered by AI hyperscalers, with the amount of yen-denominated debt issuances by foreign entities reaching a record in the April-September half.

The offering of yen-denominated bonds issued in Japan by foreign institutions, as well as yen bonds issued overseas, totaled roughly 2.5 trillion yen ($15.9 billion) for the six months, up 160% on the year, according to tallies by Daiwa Securities. The figure surpassed the previous 2.1 trillion yen record for the six months from October 2018 through March 2019.

Alphabet, the Google parent, issued its first yen-denominated bonds in May totaling 576.5 billion yen, a record high. The company is expected to use the money for the massive investments needed for AI buildouts.

"Most overseas issuers are converting the yen raised through yen-denominated bonds into currencies like the dollar and the euro," said a source at a major brokerage.

As hyperscalers continue massive fundraising, U.S. investors are increasingly worried their money is being invested too heavily in the AI sector, prompting Alphabet to search elsewhere for willing investors. The company is also issuing bonds in euros and Swiss francs. Amazon issued pound-denominated bonds for the first time in September.

Alphabet was also testing the Japanese corporate bond market, which is relatively small compared with the Japanese economy, primarily because it did not offer attractive yields during the years of near-zero interest rates.

Rising interest rates in Japan are bringing back investors to the market, which could "help lure AI-linked companies that are expanding fundraising around the world," said Masahiro Koide at Mizuho Securities, which served as a lead underwriter for Alphabet's debt offering.

Hon Hai Precision Industry's Singapore subsidiary issued a yen-denominated bond totaling 101.9 billion yen in September, its first in nine years.

As investors return, companies with high debt ratings are also issuing bonds at lower coupons. In July, Zurich Insurance of Switzerland raised 50 billion yen through its first ever yen-denominated bond. Compatriot UBS Group also offered bonds in yen June for the first time in seven years.

In August, the Asian Development Bank issued a yen-denominated bond for the first time since 2007. The 20 billion yen raised through the seven-year bond will go toward water resource conservation and other purposes. The bank holds the highest AAA rating from a leading rating agency.

The National Mutual Insurance Federation of Agricultural Cooperatives purchased the entire amount. The yield is in the mid-2% range, slightly higher than the yield on seven-year government bonds.

A representative from Daiwa Securities, the lead underwriter, said, "We were able to confirm that there is demand from investors if they can expect higher investment returns than Japanese government bonds." "A global scramble for money is underway, with the AI industry and even national governments joining the race," said Mizuho Securities' Koide.

Japan's corporate bond issuance amount for January-September is approximately 12 trillion yen. This is small compared to the nearly 300 trillion yen in the U.S. If the rapid influx of foreign companies continues, it could hinder fundraising for Japanese companies.

Japanese companies are increasing domestic bond offerings while simultaneously diversifying funding sources. According to the U.K.'s LSEG, Japanese companies issued foreign-currency-denominated bonds totaling $110 billion in the first half of 2026, a half-year record.

At the end of June, Sony Group raised $1 billion through its first foreign currency-denominated corporate bond issuance in 28 years. The move was "aimed at diversifying its fundraising methods and expanding its investor base, given its current fundraising and investor base, which is primarily concentrated in the Japanese market," the company said in a statement.