Business

SoftBank in talks with Japanese banks as it seeks loans to bail out WeWork

JIJI

SoftBank Group Corp. is in talks with partner financial institutions including Mizuho Bank to secure loans totaling ¥200 billion to ¥300 billion to support The We Co., operator of the WeWork office-sharing business, sources with knowledge of the matter said Thursday.

SoftBank plans to provide a total of $9.5 billion (¥1.03 trillion) in assistance to the financially troubled U.S. company.

The bailout package, which will include loans, corporate bond purchases and a tender offer, may create new funding demand of $6.3 billion for SoftBank.

SoftBank alone has cash reserves of over ¥2 trillion, but it plans to cover part of the new cash demand through loans, according to the sources.

In addition to Mizuho, SoftBank has asked banks including MUFG Bank and Sumitomo Mitsui Banking Corp. for loans. But some of them are cautious about offering additional financing as loans to the company swell.