Rakuten Group priced a local bond at the year’s highest coupon of 4.691%, giving Japan’s credit market the clearest sign yet of the impact of rising rates on corporate borrowing costs.

The company sold a ¥82 billion ($546 million) perpetual subordinated bond, which is callable after five years at a spread of 350 basis points over Japanese government bonds, according to lead manager Daiwa Securities.

Japanese bond yields have climbed over concerns the next administration may pursue a more expansionary fiscal policy. Average yields on yen corporate bonds have reached the highest level since 2009, according to Bloomberg indexes. The elevated government benchmark yields have added upward pressure on funding costs for issuers like Rakuten.

The relatively high yield on the latest notes, which is above comparable offerings by SoftBank Group and Japan Airlines, suggests investors remain cautious about Rakuten’s credit profile.

Earlier this year, SoftBank raised ¥200 billion via subordinated bonds with a 4.556% coupon. Japan Airlines issued its first perpetual notes with a 4.124% coupon.

This marks Rakuten’s second bond offering to domestic institutional investors this year. The company, long reliant on offshore markets, is regaining access to Japan’s local credit market as its mobile unit shows signs of improvement.

In September, both Japan Credit Rating Agency and Rating and Investment Information revised their outlook on Rakuten to stable from negative. R&I said domestic e-commerce and fin tech profits are increasingly offsetting losses in the company’s mobile unit, easing pressure on its credit profile.

The bond sale could lead to higher interest expenses for Rakuten, Sharon Chen, an analyst at Bloomberg Intelligence, said in a note ahead of the pricing. The proceeds will likely be used to redeem a U.S.-dollar-denominated perpetual bond callable in April 2026, which carried a lower yen-equivalent interest rate of around 4%, she said.