Softbank Debt Reduction Plan; Group to buyback $1.9bn worth unsecured bonds

By Rahul Vaimal, Associate Editor
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As of its debt reduction strategy, renowned global investment group, Japan’s SoftBank is expected to buy back it’s domestic unsecured corporate bonds worth $1.9 billion starting from June 30 to July 17.

As a COVID-19 induced slowdown, the consequent lockdown extended, several tech investments by Softbank group had resulted in a loss to the investor. Masayoshi Son, SoftBank CEO is initiating an asset monetization program that is expected to raise $41 billion in funds to support the share buybacks and reduce debt

Following its part sale of T-Mobile U.S’s stake and several rethe revaluations of its own shareholdings, the tech conglomerate is expected to record a gain of around $5.6 billion in the April-June quarter.

SoftBank, is supported by a loyal retail investor base which also owns Japan’s third-largest wireless carrier, has an oversized presence in Japan’s junk bond market with its debt-heavy balance sheet.

The massive asset sale plan has caused concern among several credit-rating firms such as  Moody’s which revised its outlook last week which resulted in a corporate dispute with SoftBank which asked for its rating to be withdrawn in March.