Softbank Group finalizes terms for ¥200bn hybrid bond

Softbank Group Corp. (SBG) today confirmed the terms for its ¥200.0 billion domestic hybrid notes (with an optional interest payment deferral provision). The notes, primarily offered to institutional investors, carry a fixed interest rate of 4.556% for the first five years, transitioning to a floating rate thereafter, with step-up provisions at years 5, 20, and 25. The 35-year notes mature on September 3, 2060, with early redemption possible on or after September 4, 2030, at SBG's option.

The issuance, dated September 4, 2025, is intended to refinance a portion of domestic hybrid notes maturing in February 2026 and to partially fund the acquisition of Arm Holdings plc shares from SoftBank Vision Fund 1 in August 2023. This issuance is expected to complete the replacement of ¥177.0 billion of domestic hybrid notes.

SBG expects the hybrid notes to receive 50% equity treatment from rating agencies, including Japan Credit Rating Agency, Ltd., due to their equity-like characteristics such as optional interest deferral, long maturity, and subordination to senior debt. The notes are rated BBB+ by Japan Credit Rating Agency, Ltd. Underwriters include Daiwa Securities Co. Ltd. and SMBC Nikko Securities Inc.