Group 1 - SoftBank Group Corp. has announced a hybrid bond issuance of 200 billion yen (approximately 1.3 billion USD) with a coupon rate of 4.556%, marking the highest coupon rate for yen-denominated corporate bonds in Japan this year [1][2] - The bond features a "35-year term with a 5-year non-call" structure and has a spread of 340 basis points over Japanese government bonds, with a yield approximately three times that of 10-year Japanese government bonds [1] - The issuance is part of SoftBank's efforts to fund its ambitious $500 billion "Stargate" artificial intelligence initiative, which has led to unprecedented financing demands, resulting in a total bond issuance of 820 billion yen in Japan this fiscal year, the highest among Japanese companies [1] Group 2 - The hybrid bond includes a "deferred interest payment" clause and is subordinate to senior debt, with credit rating agencies expected to classify about half of the bond's principal as equity capital [2] - Initially, SoftBank aimed to raise about 100 billion yen through this issuance, which was later increased to 150 billion yen, ultimately finalizing at 200 billion yen [2] - Given the current upward trend in interest rates and strong market expectations for further increases, SoftBank's decision to lock in funding through this issuance is seen as a prudent move to maintain sufficient buffer capital [2]