SoftBank plans 550 billion yen bond in Japan, adding to jumbo deals

SOFTBANK Group is planning its latest jumbo bond in the home yen market, which if successful would make the tech conglomerate one of the biggest Asian corporate borrowers in debt markets globally this year.

Billionaire Masayoshi Son’s SoftBank Group is planning to sell 550 billion yen (S$4.7 billion) of seven-year bonds, according to a filing by the company on Monday (May 20). Then notes will be targeted at individual investors and partially used to redeem retail bonds maturing in 2024, according to a spokesperson for the company.

The company unveiled plans earlier this month to get more aggressive in artificial intelligence and other fields, after reporting a second quarter of profit and a surge in the value of assets including Arm Holdings. SoftBank has long tapped individual investors in Japan as one of its main sources of funding and the current debt offering would mark its third of the year in the yen market, as it has refrained from tapping overseas capital markets.

SoftBank Group has already priced 650 billion yen of notes this year, including a separate 550 billion yen note in March. It has more than 900 billion yen of yen bonds due in the next year including a note next month, according to data compiled by Bloomberg.

The interest rate on the planned bonds is tentatively set at 2.65 to 3.25 per cent per annum and will be finalised on May 31, according to Monday’s filing. BLOOMBERG