SoftBank Group Plans To Raise $3.7B From 2021's Second Yen Denominated Debt Offering: Bloomberg

SoftBank Group Corp SFTBF SFTBY is planning to raise $3.7 billion (405 billion yen) from a second yen-denominated bond offering in 2021 after its quarterly earnings beat, Bloomberg reports.
The offering proceeds will be utilized for debt refinancing.
The notes are estimated to be rated BBB by Japan Credit Rating Agency Ltd, priced between the range of 2.45% - 3.05% in June with a maturity period of 35 years and callable after five years.
SoftBank expects that the notes be treated as 50% equity from rating firms JCR and S&P Global Ratings. The notes include optional interest payment deferral provision, subordinated payment priority to senior debt, and a step-up-interest provision.
SoftBank’s Coupang Inc CPNG investment majorly contributed to a net income of 1.93 trillion yen during the March quarter.
SoftBank’s Vision Fund investment arm drove recent profits after being the source of its biggest loss a year ago.
SoftBank had long depended on Japanese individual investors for most of its bond market yen funding, capitalizing on its strong brand recognition.
SoftBank paid a 3% interest to certain bondholders compared to the average investment-grade yen corporate debt yield of less than 0.4%.
SoftBank priced 177 billion yen of notes in an institutional debt offering in January.
Price action: SFTBF shares traded lower by 3.49% at $77.65 on the last check Wednesday.