Japanese issuers' bond offerings denominated in US dollars and euros are poised to break through the $100 billion mark for the first time this year. On Tuesday, multiple Japanese companies made a concentrated push into the primary bond market, driving total issuance volumes toward this historic milestone.

At least seven financial institutions, including Nomura Holdings (NMR.US) and Mitsubishi UFJ Financial Group (MUFG.US), are leading this week's bond issuance wave, which is expected to be one of the busiest trading weeks in global bond markets this year.

"We're seeing a significant increase in offshore bond issuance by Japanese companies, driven by increased M&A activity, substantial foreign currency capital expenditure needs, and investments in new technology sectors such as artificial intelligence (AI) and data centers," said Daniel Kim, Co-Head of Asia Pacific Debt Capital Markets at HSBC Holdings.

He also noted that refinancing needs among issuers serve as an important driving factor. Currently, strong corporate fundamentals combined with renewed optimism about economic prospects are jointly boosting market risk appetite.

With the US dollar bond market experiencing some of the lowest yield premiums in decades, companies worldwide are rushing to issue bonds to lock in these favorable financing costs. Against this backdrop, Japanese companies are increasingly utilizing their balance sheets to conduct domestic and international M&A activities.

In July this year, Japanese telecommunications giant Nippon Telegraph and Telephone (NTTYY.US) issued $17.7 billion in USD and EUR bonds, setting a record high for such bond issuances in the Asia-Pacific region. The proceeds were used to refinance bridge loans for an M&A transaction.

Compiled data shows that Japanese issuers have cumulatively issued $93 billion in USD and EUR bonds year-to-date, representing a 67% increase compared to the same period last year. The data also indicates that Japanese issuers' previous annual bond issuance record stood at approximately $98 billion.

It's worth noting that Japanese companies aren't the only ones planning to issue USD bonds on Tuesday, as State Bank of India and HSBC (HSBC.US) are also advancing their bond offering efforts.