SoftBank Group plans to raise 260 billion yen ($1.6 billion) through 35-year subordinated bonds targeted at individual investors. Pricing is set for June 5, with an initial five-year coupon of 4.8% to 5.6%.

The hybrid notes rank below senior debt, let the issuer defer interest payments, and are expected to receive 50% equity treatment from rating agencies. That makes them riskier than regular corporate bonds.

SoftBank said the proceeds will partly refinance dollar-denominated hybrid notes, including one with a first call in July 2027. The sale will also help meet broader funding needs tied to AI investments.

SoftBank also sold 418 billion yen (US$2.63 billion) in retail bonds in April, alongside US$3.6 billion and euro denominated bonds for institutional investors.

The offering comes as individual investors play a bigger role in Japan’s record corporate bond market. SoftBank’s credit-default swaps remain among the widest among Japanese companies after S&P Global Ratings revised its outlook to negative in March.

🔗 Source: Bloomberg

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