Softbank Group Asks Mizuho, Others for Loans over WeWork

Economy

Tokyo, Nov. 21 (Jiji Press)--Japan's Softbank Group Corp. <9984> is in talks with partner financial institutions including Mizuho Bank to receive loans totaling 200 billion to 300 billion yen to support The We Company, the operator of the WeWork office-sharing business, informed sources said Thursday.

Softbank plans to provide a total of 9.5 billion dollars in financial assistance to the financially troubled U.S. company.

The bailout package, which will include loans, corporate bond purchases and a tender offer, may create new funding demand of 6.3 billion dollars for Softbank.

Softbank alone has cash reserves of over 2 trillion yen, but it plans to cover part of the new cash demand by loans from banks, according to the sources.

In addition to Mizuho, Softbank has asked banks including MUFG Bank and Sumitomo Mitsui Banking Corp. for loans. But some of them are cautious about additional financing due to swelling loans to the company.

[Copyright The Jiji Press, Ltd.]

Jiji Press