Japanese telecoms giant Softbank has launched a Y400bn (US$3.85bn) bond offering to local retail investors.
The notes, which mature in five years, carry an annual coupon of 1.26% and priced at par. The offer period starts tomorrow and ends on 11…
Japanese telecoms giant Softbank has launched a Y400bn (US$3.85bn) bond offering to local retail investors.
The notes, which mature in five years, carry an annual coupon of 1.26% and priced at par. The offer period starts tomorrow and ends on 11 September.
Underwriters for the issue are Nomura, Daiwa, Mizuho, Mitsubishi UFJ, Morgan Stanley, SMBC Nikko, SBI, Okasan, IwaiCosmo and Tokai Tokyo. The trustee is Aozora Bank.
Softbank said it would use the proceeds to redeem bonds, repay borrowings and fund investments.
The company, which recently walked away from months-long talks to merge its US unit Sprint with rival T-Mobile US after expecting strong regulatory hurdles, did not elaborate on the investments.
But analysts have speculated that Softbank could be tempted to invest in adjacent-sector companies, such as Yahoo and Dish Network.
Already, the Japanese operator is the biggest shareholder in Yahoo Japan and Chinese e-commerce giant Alibaba, which is soon to list shares in a public offering. Softbank CEO Masayoshi Son has previously said the company does not plan to sell its stake down in the IPO.
Softbank, which has reportedly inked US$51bn worth of acquisitions since 2009, recently posted sales up 126.1% year-on-year to Y1.99trn (US$19.4bn), while operating profit dropped 15.6% to Y337.6bn (US$3.3bn).
