Japan’s SoftBank aims to raise $3-5b via dollar bond issue

REUTERS/Toru Hanai

Japan’s SoftBank Group Corp is targetting raising between $3 billion and $5 billion through an offering of U.S. dollar bonds, according to a person familiar with the plans.

The group has named Morgan Stanley, Bank of America Merrill Lynch and Deutsche Bank as joint global coordinators for a bond offering, it said in an announcement on Thursday, without disclosing the amount it plans to raise.

A SoftBank spokesman said an issuance of hybrid bonds is under preparation, but declined to comment on details.

The bond offering comes after the telecoms-to-investment conglomerate announced raising the world’s largest private equity fund – the nearly $100 billion Vision Fund backed also by Saudi Arabia’s main sovereign wealth fund – in May.

It bought British semiconductor designer ARM Holdings last year for $32 billion and has been involved in a number of deals across the globe this year including acquisitions of two robotics business from Google’s parent company Alphabet Inc.

Shortly after it announced the ARM deal, SoftBank said it was considering selling around $9.8 billion worth of hybrid bonds in the financial year that ended in March to bolster its capital base and secure funds for future growth.

Hybrid bonds are often treated as quasi-equity by credit-rating firms, allowing companies to raise capital without hurting their ratings.

SoftBank did not specify the purpose of the proceeds in the announcement on Thursday. It will meet fixed-income investors in Hong Kong, Singapore and London from tomorrow. The group is rated Ba1 by Moody’s and BB+ by S&P.

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Reuters

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.