Norinchukin Bank has experienced a significant loss of $5.8 billion due to the sale of unprofitable foreign bonds. The Japanese agricultural lender, known for being one of the largest institutional investors in the country, has adjusted its annual loss forecast to exceed ¥1.5 trillion ($9.7 billion) due to ongoing challenges in the bond market.

In June, Norinchukin made headlines by announcing plans to divest approximately ¥10 trillion in US and European sovereign bonds this fiscal year. This decision was made in response to substantial losses resulting from unfavorable interest rate bets. So far, the bank has already sold ¥7.5 trillion in bonds during the first half of the fiscal year, indicating a more aggressive strategy to mitigate financial setbacks.