Softbank Corp. plans to raise 1.45 trillion yen by securitizing its Vodafone K.K. mobile phone business, Softbank officials said Tuesday.
Issuing bonds backed by profits from the mobile phone business to several financial institutions, the Internet and telecommunications conglomerate will raise the money to refinance 1.28 trillion yen in one-year loans it borrowed in April for the acquisition of Vodafone K.K. from Britain's Vodafone Group PLC, the officials said.
Softbank is expected to make a basic decision by the end of the month on the securitization, with Mizuho Corporate Bank, Citigroup and others serving as lead managers.
Real-estate securitization, such as bonds backed by leasing income, is common in Japan, but the securitization of a business itself is unusual.
Earnings at Softbank's cell phone business are considered more stable than its other operations.
The planned securitization is expected to enable Softbank