Panasonic joins Toyota, others in offering bonds

TOKYO, March 4 (Reuters) - Panasonic Corp (6752.T), the world's No.1 plasma TV maker, raised 400 billion yen ($4.06 billion) on Wednesday selling bonds to help fund its purchase of smaller rival Sanyo Electric Co 6764.T.

Panasonic joins Toyota Motor Corp (7203.T) and Ricoh Co (7752.T), which recently sold bonds to raise money, while sluggishness in the equities market has been discouraging companies from issuing new shares.

The proceeds from the bond sale will be used for acquisitions as well as operations, Panasonic said in a statement on Wednesday, when it sold bonds for the first time since 2002.

"Japanese companies need money, and for Panasonic it's clear that it needs money for the Sanyo acquisition," said Hidetoshi Ohashi, a credit analyst at Morgan Stanley in Japan.

Ohashi said falling interest rates were encouraging companies to issue bonds, while for investors it was a good opportunity to enjoy wider spreads between government and corporate bond yields.

Since Jan. 1, Japanese corporate bond sales amount to 2.2 trillion yen ($22.35 billion), up 38 percent from the same period last year, according to Thomson Reuters data.

Panasonic, the maker of Viera flat TVs and Lumix digital cameras, said it sold 100 billion yen of three-year bonds, 200 billion yen of five-year bonds and 100 billion yen of 10-year bonds.

Toyota Motor Corp (7203.T), which predicts its first annual net loss since 1950 in the year to March 31, last month raised 200 billion yen in its first bond sale in almost seven years.

Ricoh Co (7752.T), a copier and printer maker, sold 85 billion yen of bonds last month. Sharp Corp (6753.T), an electronics maker which expects its first ever annual operating loss, is also planning to sell bonds, according to people familiar with the matter. [ID:nTK0241001]

Panasonic last month warned of a loss of 380 billion yen this business year for restructuring costs amid slower sales.

"Companies with losses may need cash in the future for restructuring," Morgan Stanley's Ohashi said. ($1=98.44 Yen) (Editing by Michael Watson)