SoftBank Group Corp plans USD973m bond sale

6 Jan 2021

Japanese multinational conglomerate holding company SoftBank Group Corp is understood to be taking advantage of low-cost borrowing in the credit markets by selling JPY100 billion (USD973 million) of hybrid bonds, Bloomberg cites a statement from co-lead underwriter Nomura Holdings as saying. Masayoshi Son-led SoftBank aims to price the deal before the end of January, having seen its share price rebound last year following a drop in March due to the pandemic and concerns over the group’s sizeable levels of debt. The company’s founder responded to the situation swiftly, implementing a JPY4.5 trillion disposal plan and a JPY2.5 trillion stock buyback. It now aims to sell bonds with a 35-year maturation, but that can be called after just five, it confirmed in a statement.

SoftBank Group Corp booked net sales of JPY2.630 trillion for the six months ended 30 September 2020, up 3.6% from JPY2.540 trillion in the corresponding period of 2019, as net income attributable to shareholders ballooned to JPY1.883 trillion from JPY421.552 billion – largely due to gains related to the merger of Sprint with T-Mobile US in the United States. However, Masayoshi Son’s group reported a JPY131.7 billion loss from speculating in tech stock firms as its efforts to diversify into other markets flopped. Income before tax climbed 22.9% to JPY1.441 trillion, although SoftBank has dropped reporting ‘operating profit’ as a key metric, citing a shift away from running businesses to investments in various tech industries. ‘Instead, “gain (loss) on investments” will be used in order to show investment performance in the consolidated financial results,’ it said.

Japan, SoftBank Group Corp