TOKYO, Jun 05 (Pulse News Wire) – SoftBank Group Corp. (9984.T) announced today the issuance conditions for its domestic hybrid bonds (with interest deferral provisions).
The bonds, primarily aimed at individual investors, will have a total issue amount of ¥260.0 billion per bond valued at ¥1 million. The initial five-year fixed rate is set at 5.12%, followed by variable rates based on one-year Japanese government bond yields plus an initial spread of 3.160%. The maturity date is set for June 19, 2061, with optional prepayment possible on June 19, 2031, and subsequent interest payment dates. Subscription for the bonds will take place from June 08, 2026, to June 18, 2026, with payments due on June 19, 2026.
The bonds will be offered through general public subscription within Japan, with SMBC Nikko Securities, Mitsubishi UFJ Morgan/Stanley Shouken Kabushiki Kaisha, SBI Securities, Nomura Securities, Mizuho Securities, Tohtomatsu Securities, Iwai Cosmo Shouken Kabushiki Kaisha, and others acting as underwriters. The credit rating for the bonds is BBB+ from Japan Credit Rating Agency. Funds raised from the issuance will partially refinance existing dollar-denominated hybrid bonds maturing in July 2027. The hybrid nature of the bonds allows for interest deferral, long-term repayment, and subordination compared to general debt, leading to capital-like characteristics recognized by credit agencies such as Japan Credit Rating Agency and S&P Global Ratings Japan.
In case of early redemption or buyback, SoftBank plans to replace the bonds with similar capital-like instruments considering its financial condition and impact on ratings.
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