Softbank Group to Borrow 500 B. Yen Using Telecom Unit's Shares
Tokyo, Feb. 20 (Jiji Press)--Japan's Softbank Group Corp. <9984> has said it will borrow up to 500 billion yen from 16 financial institutions using as collateral part of its stake in domestic telecommunications unit Softbank Corp. <9434>.
The move is intended to boost the group's cash on hand for purposes such as redemption of corporate bonds. The group is slated to redeem bonds worth about one trillion yen by December 2021.
Up to 953 million shares of the subsidiary, worth some 1.4 trillion yen, will be put up as collateral for the borrowing planned for Tuesday next week, according to the group's announcement on Wednesday.
This is the first time for Softbank Group to procure funds using Softbank Corp. shares as collateral.
Japan's Mizuho Bank will be among the 16 lenders.
[Copyright The Jiji Press, Ltd.]