Sources said that the loan secured by Alibaba’s equity will not be reflected in Softbank’s debt table, which is expected to help it avoid possible downgrades. One of the insiders said that the new financing may also be a subsidiary of Softbank’s telecommunications company. SoftBank Corp cleared the listing barrier because the company was used as collateral for Softbank’s early debt, and the new financing will help it withdraw from the mortgage.
Bank of America, BNP Paribas, Citigroup, Deutsche Bank, Goldman Sachs, JP Morgan Chase, Morgan Stanley, Nomura Holdings, French Industrial Bank and UBS are underwriters of Softbank’s loan.
Recently, Softbank Group continued to raise funds. Earlier last month, a source from the banking sector revealed that Softbank is considering a loan of 5 billion U.S. dollars through its chip design company, ARM.
Softbank spent 32 billion U.S. dollars to acquire Britain’s largest technology company, ARM. In 2016, Softbank hopes to optimize investment and acquire some cash.
Since ARM does not have a debt burden, Softbank does have reason to pass an ARM loan instead of passing through itself. Softbank's debt problem is very prominent, and the non-investment grade ratings it obtains may be subject to additional leverage and increase its cost of capital.
Softbank Group is a comprehensive venture capital company that focuses on IT industry investment, including networking and telecommunications. Founded in 1981 by Sun Yizheng in Japan and listed in Japan in 1994. Currently, Softbank Group has become the largest in the world. The most active venture capital company. According to the latest news from foreign media, the person in charge of Softbank’s vision fund stated that the fund will become the largest shareholder of 100 technology companies in the world, and will integrate some of the invested companies.