Japan is headed for more mergers and acquisitions after a recent deal from one of the country’s biggest telecom firms, and that’s raising hopes for lucrative landmark bond sales to finance the spree.

Nippon Telegraph & Telephone Corp. is planning note offerings to help fund the ¥4.3 trillion purchase of its mobile unit. A big bond sale by the telecom firm would follow huge deals since last year to pay for Takeda Pharmaceutical Co.’s acquisition of Shire PLC, and Asahi Group Holdings Ltd.’s purchase of Anheuser-Busch InBev NV’s Australian business.

For investors, giant bond sales are attractive because issuers usually need to pay a premium to compensate for the added risk of large repayments. While COVID-19 has caused global M&A to tumble this year, many Japanese firms are continuing to eye overseas targets as a shrinking population limits business prospects at home: In a survey of Japanese executives, 57% said they will actively pursue M&A in the next 12 to 24 months, according to consulting firm EY.