Key facts
- SoftBank Group plans to issue approximately 1 trillion yen ($6.26 billion) in corporate bonds for retail investors.
- This issuance is poised to be the largest retail bond sale by a Japanese company.
- The funds raised will support SoftBank's strategy of accelerating investments in physical AI.
- SoftBank has detailed terms for its 65th and 66th unsecured straight corporate bonds, with interest rates around 3.34% and 5-year maturities.
- Proceeds will also be used to redeem existing bonds maturing in April 2025 and partially fund the acquisition of Arm Holdings shares.
SoftBank Group is preparing to issue approximately 1 trillion yen ($6.26 billion) in corporate bonds aimed at individual investors in Japan, a move that would represent the largest retail bond sale by a Japanese company. The funds raised are intended to fuel further acquisitions in the physical AI sector, aligning with the strategic direction of Chairman and CEO Masayoshi Son.
SoftBank has detailed the terms for its 65th and 66th unsecured straight corporate bonds. The 65th bond, referred to as the "Fukuoka SoftBank HAWKS Bond," will total 600 billion yen with an annual interest rate of 3.34% and a maturity of five years. The 66th bond will be for 20 billion yen, also with a five-year term and a slightly lower interest rate of 3.336% per annum. Both bonds are unsecured and will be offered publicly in Japan, primarily to individual investors for the 65th series and institutional investors for the 66th.
The proceeds from these bond issuances are earmarked for specific financial activities. A significant portion will be used to redeem domestic bonds totaling 500 billion yen and foreign currency-denominated bonds amounting to 72.4 billion yen, both maturing in April 2025. Additionally, a part of the funds will contribute to the installment payment for the acquisition of Arm Holdings plc shares from SoftBank Vision Fund 1 in August 2023. Purchasers of the 65th bond during the offering period will receive a "Otosan (Father of Shirato Family) Cheer Captain 2-Piece Travel Pouch Set" as a premium.