SoftBank lines up backers for $9bn loan
The IPO’s top underwriters are finalising terms of the loan to the Vision Fund
London — SoftBank Group has lined up commitments for a loan of about $9bn for its massive Vision Fund, provided by banks, including arrangers of its Japanese wireless business’s initial public offering (IPO), people with knowledge of the matter said.
The IPO’s top underwriters, which include Nomura Holdings and Goldman Sachs Group, were finalising terms of the loan to the Vision Fund, the people said. Stakes in about five of the investment fund’s holdings will be used as collateral, according to the people, who asked not to be identified because the information is private.
Deutsche Bank, Mizuho Financial Group and Sumitomo Mitsui Financial Group (SMFG) were also among banks chosen to lead SoftBank’s wireless unit IPO, Bloomberg News reported last week. Details of the loan are still being worked out, and terms could change, the people said.
The people did not specify which companies’ stakes would be used as collateral.
Representatives at SoftBank, Nomura, Goldman Sachs, Deutsche Bank and the brokerage units of Mizuho and SMFG declined to comment.
SoftBank, led by billionaire Masayoshi Son, had earlier told potential underwriters seeking a large role on the IPO that they should offer to lend to other parts of the parent company’s empire, it was reported last month. A representative for SoftBank said at the time there was "no truth" to this.
The almost $100bn Vision Fund has holdings in companies including ARM Holdings, Uber Technologies, WeWork, Slack Technologies and General Motors’ self-driving car unit.
It has already committed $65bn since it began making investments nearly a year ago.
Son said in a September interview that he planned to raise a new $100bn fund every two or three years, and would spend about $50bn annually.
SoftBank’s wireless IPO could raise about ¥3-trillion, making it among the biggest in the world, data compiled by Bloomberg show.
The largest so far was the $25bn listing of Alibaba Group Holdings in 2014. Bloomberg