Japanese telco Softbank has said it will raise Y200bn (US$2.6bn) by issuing preferred securities via its Cayman Islands-incorporated unit SFJ Capital.
The company explained in a statement that Y183.5bn (US$2.4bn) of that financing will be used to pay…
Japanese telco Softbank has said it will raise Y200bn (US$2.6bn) by issuing preferred securities via its Cayman Islands-incorporated unit SFJ Capital.
The company explained in a statement that Y183.5bn (US$2.4bn) of that financing will be used to pay for the acquisition of preferred stock issued to Vodafone Group.
“In December 2010, the company acquired the class 1 preferred stock and stock acquisition rights issued by BB Mobile to Vodafone International Holdings, and a subordinated loan by Softbank Mobile from Vodafone Overseas Finance. Out of the total acquisition amount of Y412.5bn [US$5.4bn], the unpaid amount Y200bn will become due in April 2012.”
Softbank added that the remaining Y16.5bn (US$215.5m) will be allocated for the redemption of the company’s corporate bonds maturing in July 2012. The company said it expects this issuance to have a minor impact on its consolidated income for the year to 31 March 2012.