- SoftBank Corp is expected to make a decision as early as Monday to raise up to $808.79 million through Japan's inaugural public offering of bond-type class shares, according to a report from Bloomberg News, citing individuals with knowledge of the matter. The Japanese telecommunications division of the prominent technology investment firm, SoftBank Group, initially unveiled this issuance plan in May, with an announcement that the shares would be listed before the conclusion of the 2023 financial year, which concludes on March 31, 2024.
- SoftBank has issued a statement clarifying that the report is not based on information previously disclosed by the company. It is important to note that these shares will lack voting rights and will not be convertible into common shares, thus having no impact on existing shareholders, as indicated in SoftBank's statement from May.
Why it matters
Interest rates in Japan are still at very low levels even after their global counterparts rose, and the central bank last week calmed speculation about rate hikes in the near term. This increases the need for investments that provide better returns, especially in light of the risk that Japanese household savings, amounting to 1.107 trillion yen, will increasingly be drawn to higher-return investments abroad, which will increase pressure on their currency.