SoftBank unit set to raise $1 billion from its first dollar bond

Japan Times

11 hours ago

A key unit of Japanese conglomerate SoftBank Group is offering $1 billion of dollar bonds in the unit's first US high-grade deal.
SoftBank Corp.'s five- and 10-year notes are set to respectively price 0.9 and 1.10 percentage points above Treasuries, according to a person with knowledge of the deal who asked not to be identified disclosing private details. Those levels are a quarter-point less than revised price talk unveiled early Monday in New York.
Each tranche will be $500 million in size, in line with company expectations last week.
The money raised would go toward general corporate purposes, the person said, adding that the notes are expected to be rated BBB by S&P Global Ratings and BBB+ by Fitch Ratings. Morgan Stanley is acting as bookrunner and dealer manager for the offering, with Citigroup, JPMorgan Chase, Mizuho and SMBC Nikko Securities also serving as bookrunners.
There are five offerings in the US investment-grade market Monday.
SoftBank Group, meanwhile, has mandated banks ahead of possible multipart bond sales in both dollars and euros. The conglomerate last held such a note offering in June 2024.
The offerings come as SoftBank founder Masayoshi Son last week acknowledged succession plans, addressing a key concern for investors regarding its long-term future.
SoftBank Corp., listed in 2018 as the mobile arm of SoftBank Group, has since expanded into financial services and artificial intelligence. Last year, it obtained credit ratings from international agencies including S&P — laying the groundwork for its first overseas bond offering.
At the company's annual general meeting last week, SoftBank Corp. Chief Executive Officer Junichi Miyakawa said continued aggressive investment in AI is key to boosting corporate value.