Info-tech

SoftBank to raise $2.8 bn from Japan Banks

Bloomberg Tokyo | Updated on November 21, 2019 Published on November 21, 2019

SoftBank Group Corp is in talks to receive as much as 300 billion yen ($2.76 billion) in financing from Mitsubishi UFJ Financial Group Inc, Sumitomo Mitsui Financial Group Inc and Mizuho Financial Group Inc, according to people familiar with the matter.

The loans are part of the company’s regular financing, one of the people said, asking not to be identified because the details are private. The Nikkei reported the news earlier, saying SoftBank is raising money to pay for its $3 billion tender offer to WeWork shareholders.

We are evaluating our options flexibly while considering cash on hand, SoftBank spokeswoman Hiroe Kotera said in an emailed statement. Bank loans are one option, but nothing has been decided, Kotera said.

SoftBank last month agreed on a $9.5 billion rescue package for WeWork, a deal that handed it 80% of the troubled co-working company. Two weeks later, Masayoshi Sons company reported its first quarterly operating loss in 14 years -- about $6.5 billion -- after writing down the value of a string of marquee investments, including WeWork and Uber Technologies Inc.

Published on November 21, 2019
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