SoftBank Corp considers first bond issue since listing

13 Nov 2019

Bloomberg writes that SoftBank Corp, the Japanese telecommunications arm of billionaire Masayoshi Son’s SoftBank Group Corp conglomerate is planning to sell its first bond since listing, in a move that is being seen as a ‘test of investor sentiment after recent stumbles’ by the group. Under the issue, SoftBank Corp could offer up for sale, five-, seven- and ten-year notes in the current fiscal year ending 31 March 2020, with pricing likely to occur in the January-March quarter, people familiar with the matter are quoted as saying. SoftBank Corp declined to comment, when asked by Bloomberg about the debt sale plan.

As previously reported by CommsUpdate, earlier this month SoftBank Group Corp booked an operating loss of JPY704.368 billion (USD6.5 billion) for its fiscal second quarter to 30 September 2019, reversing a profit of JPY705.723 billion in the year-ago quarter, as it was slammed by a JPY497 billion investment write-down in failing start-up WeWork and a near JPY970 billion loss for its flagship Vision Fund. In a setback for Masayoshi Son’s ambitions to launch a second Vision Fund, the CEO and chairman apologised for SoftBank Group Corp’s poor performance: ‘There was a problem with my own judgement, that’s something I have to reflect on,’ he told investors, according to press reports. Nevertheless, Son remained bullish that WeWork was still a solid business, suggesting there would be a ‘hockey stick’ recovery in its profits at some point.

Japan, SoftBank Corp, SoftBank Group Corp