SoftBank to repurchase $1.9b of corporate bonds

FILE PHOTO: Japan's SoftBank Group Corp Chief Executive Masayoshi Son bows his head after his presentation at a news conference in Tokyo, Japan, Nov. 5, 2018. REUTERS/Kim Kyung-Hoon/File Photo

Japan’s SoftBank Group Corp said on Monday it will repurchase up to 200 billion yen ($1.9 billion) of its domestic unsecured corporate bonds from June 30 to July 17, part of its plan to pay down debt.

SoftBank Chief Executive Masayoshi Son is undertaking an asset monetisation programme to raise $41 billion to fund share buybacks and reduce debt, following a series of soured tech investments that drove the group to a record annual loss.

The tech conglomerate also said it expects to record a gain of around 600 billion yen ($5.6 billion) in the April-June quarter on the sale of part of its stake in T-Mobile U.S. and the revaluation of the shares it still holds.

A derivative liability from call options received by the wireless carrier’s top shareholder Deutsche Telekom is not included in that figure.

SoftBank’s leveraged balance sheet has given it an oversized presence in Japan’s junk bond market, supported by a loyal retail investor base for a household name that also owns Japan’s third largest wireless carrier.

The massive asset sale plan has caused concern among credit-rating firms, with Moody’s revising its outlook last week – reigniting a spat with SoftBank, which in March asked for its rating to be withdrawn.

Reuters

 

 

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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.