SoftBank borrows USD 8 bln in margin loan backed by stake in Alibaba - report

News General Global 9 APR 2018
SoftBank borrows USD 8 bln in margin loan backed by stake in Alibaba - report
SoftBank has borrowed USD 8 billion from a consortium of banks, using its stake in Alibaba as collateral, Bloomberg reported, citing sources familiar with the matter. The group includes Morgan Stanley, Citigroup, Goldman Sachs, Bank of America and JPMorgan Chase, as well as BNP Paribas, Deutsche Bank, Nomura, Societe Generale, UBS Group and ING. The sources added that the margin loan will not be reflected in Softbank’s debt, which may help shield the company’s from a ratings downgrade, and could help its plans to sell shares in a domestic subsidiary. 

SoftBank was immediately available for comment.

SoftBank is preparing the IPO of its mobile phone unit with Nomura. The company is looking to raise over JPY 2 trillion.

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General

Companies:

Softbank,  Alibaba,  Societe Generale

Regions:

Global

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Corporate strategy, Financial funding

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