Brief news
SoftBank Issues Bonds to Reduce Debt and Focus on AI Investments
• SoftBank plans to issue bonds in euros and dollars to reduce debt and focus on AI investments.
• The bonds will be issued in two tranches with annual interest rates between 5.4% and 7%.
• The funds will be used for general corporate purposes and debt repayment.
• SoftBank’s shares closed 2.5% higher after hearing about the bond offering.
• The company, which manages the Vision Fund, plans to increase its holdings in AI startups.
Illustrated news
SoftBank stated on Friday that it would be issuing bonds denominated in euros and dollars in an effort to reduce its debt and concentrate its investments in artificial intelligence.
The massive Japanese holding firm said that it will issue 900 million euros ($962.8 million) in bonds denominated in euros and around $900 million in bonds issued in US dollars in two tranches. These will have annual interest rates between 5.4% and 7%.
According to SoftBank, the funds will be utilised for both “general corporate purposes and the repayment of indebtedness.”
After hearing about the bond offering, its shares closed 2.5% higher.
Debt financing is being done at a time when SoftBank’s total losses are starting to decrease despite some of its accomplishments, such as the IPO of chip manufacturer Arm.
The business, which manages the Vision Fund, a sizable technology investment arm, has hinted that it wants to increase its holdings in artificial intelligence startups.
Masayoshi Son, the founder and CEO of SoftBank, discussed a concept he called artificial super intelligence, or ASI, in a rare public appearance this month. He stated that within ten years, artificial intelligence (AI) that is 10,000 times smarter than humans will likely exist.
SoftBank is probably hoping to take advantage of the growing investor confidence in the business, which has been demonstrated by a 65% increase in its shares year to far.
Source : CNBC News
