SoftBank Group (TYO:9984) has finalized the terms for its issuance of hybrid notes featuring an optional interest payment deferral mechanism, according to a Tokyo bourse filing on Friday.
The total offering amount is set at 260 billion yen, with a denomination of 1 million yen per note.
The 35-year notes carry an initial fixed interest rate of 5.12% per annum for the first five years. Thereafter, the rate will transition to a floating structure based on one-year Japanese government bond (JGB) yields plus a 3.16% spread, with step-up interest increases kicking in at specific intervals over the life of the instrument.
Rated BBB+ by the Japan Credit Rating Agency, the hybrid notes will be publicly offered primarily to individual investors from June 8 to June 18, with an issue date scheduled for June 19.
The offering is underwritten by a syndicate led by managers including SMBC Nikko, Mitsubishi UFJ Morgan Stanley, SBI Securities, and Nomura Securities.
Proceeds from the issuance will be used to partially replace U.S. dollar-denominated hybrid notes that reach their first voluntary call date in July 2027. SoftBank intends to replace any early-redeemed notes with instruments offering equivalent equity treatment.