NTT raises USD9.6bn in Japan’s biggest bond offering to date

11 Dec 2020

Japanese giant Nippon Telegraph and Telephone Corp (NTT Corp) has raised JPY1 trillion (USD9.6 billion) in what is the biggest bond offering in the Japanese domestic market to date. Reuters reports that the monies raised through the four-tranche deal will be used to help repay a bridging loan it took out to cover its acquisition of shares in its mobile arm, NTT DOCOMO. The offering was issued by NTT Finance and comprised of a JPY100 billion three-year tranche, priced with a 0.05% coupon; a JPY300 billion five-year with a 0.18% coupon; a JPY200 billion seven-year with a 0.28% coupon; and a JPY400 billion ten-year with a 0.38% coupon.

As previously reported by CommsUpdate, in September this year NTT Corp announced its intention to take full control of NTT DOCOMO by buying out the roughly 34% stake in the company it does not already own, and then take the company private. The nation’s former state-owned monopoly listed the cellular business 28 years ago, but making it a wholly owned subsidiary will make it easier to strengthen DOCOMO’s competitiveness and to develop ‘6G-focused communications infrastructure’. It also revealed a plan to refinance the bridge loan by a combination of bonds and long-term bank loans, potentially including foreign currency debt. The bridge loan for the acquisition pushed NTT Corp’s debt up to JPY9 trillion – a figure it plans to trim to JPY6 trillion in the medium-term by, amongst other things, spinning off its leasing business and securitising receivables.

Japan, Nippon Telegraph and Telephone Corporation (NTT Corp), NTT DOCOMO