SoftBank Group Corp. sold the biggest yen note in the Japanese corporate bond market this year, continuing a global funding spree as it faces hefty debt redemptions in the next six months.
Billionaire Masayoshi Son’s technology conglomerate priced on Friday a ¥450 billion ($4.1 billion) subordinated bond targeting individual investors at 2.4%, together with a ¥50 billion note for institutional investors, according to filings. The company has about ¥1.2 trillion of bond repayments due in its home market before the end of February, including planned early redemptions, according to data compiled by Bloomberg.
SoftBank is having one of its busiest years ever in global issuance markets, and raised more than $7 billion in a debt offering across dollars and euros in June. The company’s global presence has expanded in recent years since Son turned its focus to investing in startups and listed companies. That has exposed investors to greater financial market volatility and movements in the firm’s stock price.
Its share price rose in Tokyo this week after investor bets grew for a stock repurchase program, following the announcement of a complex deal with Deutsche Telekom AG involving T-Mobile U.S. Inc. SoftBank will borrow about $4 billion through a pair of margin loans secured by the bulk of its stake in T-Mobile U.S., according to a U.S. regulatory filing this week.
The company last month reported a slump in net income to ¥761.5 billion in the three months that ended on June 30 after the value of investments in public holdings such as Coupang Inc. declined.
Only a handful of bonds with annual coupons of 2% or more are sold in the Japanese domestic corporate debt market, and the last issuer to price at that level this year was SoftBank Group itself with a ¥405 billion subordinated note in June. The debt also offers extra yield because it has a lower priority for repayment than senior notes and a worse expected credit rating as a result.
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