As financing costs soar, Japanese companies plan to sell strategic holdings to cushion the impact.

1. Due to the highest financing costs in a generation, Japanese companies are considering selling strategic shareholdings and other assets to alleviate the pressure of interest expenses. A survey of 30 Japanese non-financial enterprises shows that some companies are also evaluating measures such as increasing overseas borrowing and early financing to optimize their financial structure.2. The rise in financing costs has begun to affect companies' investment decisions. It is estimated that, if refinancing yen-denominated bonds, companies such as Toyota Motor and Tohoku Electric Power are expected to see annual interest expenditures increase by more than 30%. This trend may prompt more companies to accelerate portfolio adjustments and prioritize funding needs for their core businesses.