Core Viewpoint - SoftBank Group announced plans to raise approximately 500 billion yen (about 22.647 billion RMB) through bond issuance aimed at individual investors, marking a significant shift in its financing strategy amid changing macroeconomic conditions in Japan [1]. Group 1: Bond Issuance Details - The bonds are seven-year unsecured senior bonds with a final coupon rate set at 3.98%, which is the highest rate for similar yen-denominated bonds issued by SoftBank in over 15 years [1]. - The last time SoftBank issued bonds with such a high coupon rate was in 2009, when the rate was 4.52% [1]. Group 2: Economic Context - The issuance of high-yield bonds is attributed to significant changes in Japan's macroeconomic environment, particularly the Bank of Japan's decision to end its negative interest rate policy in March 2024 [1]. - This policy shift has led to an increase in Japanese government bond yields, raising the overall interest rate levels in the market [1]. Group 3: Use of Proceeds and Market Impact - Proceeds from the bond sale will partially be used to repay bridge loans related to additional investments in OpenAI [1]. - Over the past month, SoftBank's stock price has declined by approximately 30%, and its credit default swap spreads, an indicator of credit risk, have widened to the highest level in nearly four months [1].

Core Viewpoint - SoftBank Group announced plans to raise approximately 500 billion yen (about 22.647 billion RMB) through bond issuance aimed at individual investors, marking a significant shift in its financing strategy amid changing macroeconomic conditions in Japan [1] Group 1: Bond Issuance Details - The bonds are seven-year unsecured senior bonds with a final coupon rate of 3.98%, setting a new record for SoftBank Group [1] - This issuance represents the highest coupon rate for similar yen-denominated bonds issued by the company in over 15 years, with the last comparable issuance in 2009 having a rate of 4.52% [1] Group 2: Economic Context - The increase in bond rates is attributed to the Bank of Japan's decision to end its negative interest rate policy by March 2024, which has raised the benchmark yields for corporate bond issuances [1] - The shift in the macroeconomic environment has led to an upward movement in the overall market interest rates [1] Group 3: Use of Proceeds and Market Reaction - Proceeds from the bond issuance will partially be used to repay bridge loans related to additional investments in OpenAI [1] - Over the past month, SoftBank's stock price has declined by approximately 30%, and its credit default swap spreads have widened to the highest level in nearly four months, indicating increased credit risk [1]