SoftBank IPO banks said to commit to $9b Vision Fund loan

Photo: Bloomberg

SoftBank Group Corp. has lined up commitments for a loan of about $9 billion for its massive Vision Fund, provided by banks including arrangers of its Japanese wireless business’s initial public offering, people with knowledge of the matter said.

The IPO’s top underwriters, which include Nomura Holdings Inc. and Goldman Sachs Group Inc., are finalizing terms of the loan to the Vision Fund, the people said. Stakes in around five of the investment fund’s holdings will be used as collateral, according to the people, who asked not to be identified because the information is private.

Deutsche Bank AG, Mizuho Financial Group Inc. and Sumitomo Mitsui Financial Group Inc. were also among banks chosen to lead SoftBank’s wireless unit IPO, Bloomberg News reported last week. Details of the loan are still being worked out, and terms could change, the people said.

The people didn’t specify which companies’ stakes would be used as collateral. Representatives at SoftBank, Nomura, Goldman Sachs, Deutsche Bank and the brokerage units of Mizuho and SMFG declined to comment.

SoftBank, led by billionaire Masayoshi Son, had earlier told potential underwriters seeking a large role on the IPO that they should offer to lend to other parts of the parent company’s empire, people with knowledge of the matter said last month. A representative for SoftBank said at the time there was “no truth” to the information.

The almost $100 billion Vision Fund has holdings in companies including ARM Holdings Plc, Uber Technologies Inc., WeWork Cos., Slack Technologies Inc. and General Motors Co.’s self-driving car unit. It has already committed $65 billion since it began making investments nearly a year ago. Son said in a September interview that he plans to raise a new $100 billion fund every two or three years, and will spend around $50 billion annually.

SoftBank’s wireless IPO could raise about 3 trillion yen ($27 billion), making it among the biggest in the world, data compiled by Bloomberg show. The largest so far was the $25 billion listing of Alibaba Group Holdings Ltd. in 2014. Banks vying for a role on Uber Technologies Inc.’s listing have pitched a valuation of as much as $120 billion, people familiar with the matter said this week.

It remains to be seen how many of the mega IPOs being planned come to fruition, especially at the valuations now touted. A market rout last week led companies globally to postpone their multi-billion stock sales, from Spanish oil refiner Cepsa to Tencent Music Entertainment Group, the Chinese streaming giant that was aiming to sell shares in the U.S.

Bloomberg

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

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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.