SoftBank Group (TYO:9984) plans to issue 260 billion yen in hybrid notes with optional interest payment deferral, mainly targeting individual investors in Japan.
The 35-year notes, tentatively priced at 4.80%-5.60% for the first five years before switching to a floating rate, feature a step-up interest provision and can be redeemed early starting June 2031, according to a Tokyo bourse filing on Monday.
While treated as interest-bearing debt for accounting purposes, the notes receive 50% equity treatment from rating agencies due to their long maturity, subordination, and deferral options.
Proceeds will help replace U.S. dollar-denominated hybrid notes reaching their first call date in July 2027. The offering runs from June 8 to June 18, with final terms to be set on June 5.