SoftBank looks forward to raise more dollars

Another step ahead by SoftBank

SoftBank announced that it is looking to raise new dollar and euro bonds with the Japanese telecoms. This move comes a day after SoftBank invested $250 million in Oyo, owned and operated by Gurgaon-based Oravel Stays Pvt. Ltd.

SoftBank has been hitting the headlines with its $93 bn Saudi-backed Visio Fund. It will use proceeds from the new bonds to refinance bank loans for the core telecoms and tech business. SoftBank carries junk ratings of Ba1 and BB+ from Moody’s and S&P respectively, while the domestic Japan Credit Rating Agency pegs it far higher at an investment grade A- level.

Its subsidiaries have more than $125bn of ‘interest-bearing debt’ according to an investor presentation.

The new bond rule falls under ‘Regulation S’ that restricts it from being sold in the US. SoftBank’s Saudi-backed technology fund has been agreeing to plunge billions of dollars into shared-office provider WeWork.

Along with Soft Bank, another Japanese Beer maker enterprise Asahi has marketed 1.2bn euros bond deal– split into four- and eight-year tranches – to investors this week.

With technical giants like SoftBank making more investments with each passing day, do you think it would be a silver lining for the startups in India?

Let us know what you think.

Source: Financial Times