Japan’s SoftBank Group Corp is lining up loan commitments totalling around USD9 billion for its Vision Fund, including loans provided by banks appointed to arrange the IPO of its domestic wireless business, Bloomberg reports. Masayoshi Son-led SoftBank has assigned a number of underwriters for the offering, including Nomura Holdings and Goldman Sachs, with unnamed sources claiming that they are finalising terms of the loan to the Vision Fund. Bloomberg notes that ‘stakes in around five of the investment fund’s holdings will be used as collateral,’ according to the sources, who asked not to be identified because of the confidential nature of the talks.
The Vision Fund is currently valued at close to USD100 billion and has holdings in companies including ARM Holdings, Uber Technologies, WeWork Cos, Slack Technologies and General Motors’ self-driving car unit. It has already committed USD65 billion since it began making investments nearly a year ago. Masayoshi Son said in a September interview that he plans to raise a new USD100 billion fund every two or three years and will spend around USD50 billion annually.
As previously reported by TeleGeography’s CommsUpdate, in January 2018 SoftBank revealed it was considering listing its domestic wireless business to raise as much as USD18 billion via an IPO to ‘accelerate the conglomerate’s transformation into one of the world’s biggest tech investors’. The following month the Japanese carrier kicked off preparations to list shares of its core telecoms unit, which contributes a third of total consolidated revenues and two-thirds of its profit. More recently, SoftBank confirmed that it now aims to sell around JPY3 trillion (USD27 billion) of shares – the biggest IPO ever – by listing on the Tokyo Stock Exchange in December.