(Bloomberg) -- Rakuten Group Inc. priced a $2 billion junk bond after boosting the size of the offering by 60% due to strong demand from investors.

The Japanese conglomerate priced the deal to yield 9.875%, according to information from a person familiar with the matter. The issuer increased the five-year deal from $1.25 billion on Wednesday, after demand for the offering surpassed $8 billion, according to people with knowledge of the matter.  

A spokesperson for Tokyo-based Rakuten declined to comment on the specific terms or the purpose of the bond issue.

A sweetener for investors was that Rakuten’s offering promised a much higher yield than other similarly rated BB credits. The average yield-to-worst on bonds with this rating is 6.63%, according to data compiled by Bloomberg.

The latest transaction marks Rakuten’s second offering this year after it sold $1.8 billion of notes in January that yielded 12.125% — a record for a Japanese firm issuing dollar bonds.

The debt-laden company said this week it plans to combine its financial units, fueling gains in its shares on speculation that move would lead to more synergies and boost value. 

--With assistance from Ayai Tomisawa and Takahiko Hyuga.

(Updates with details on pricing in second paragraph.)

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