SoftBank Targets Retail Investors with New Hybrid Bond Offering

SoftBank targets Japanese retail investors with a new 35-year hybrid bond, raising 418B yen to manage near-term debt. The bond offers up to 5.25% fixed interest for five years.

In a strategic move to manage its debt profile, SoftBank Group Corp. is turning to Japan's individual investors. The technology investment giant plans to issue a new hybrid bond, raising 418 billion yen to address liabilities coming due before their first call date in June 2026.

Shifting Focus to the Retail Market

The bond, designated as the 8th Series, is explicitly aimed at private investors, with a minimum investment threshold set at one million yen per unit. It is structured as a subordinated, unsecured instrument. The offering period is scheduled from April 13 to April 21, 2026, with a formal issuance date of April 22.

This substantial debt placement is viewed as a key test of Japanese retail investor confidence in SoftBank's financial strategy, with the results becoming clear by late April.

Detailed Terms of the Offering

A provisional annual interest rate has been set between 4.65% and 5.25%. This rate will remain fixed for the initial five-year period before converting to a variable rate. The bond features a lengthy 35-year maturity, extending to April 2061.

However, SoftBank retains the option for early redemption starting in April 2031 at any interest payment date. The structure includes built-in incentives for the company to repay the bond ahead of schedule: the interest rate will increase by 25 basis points after five years and by up to 100 basis points after 25 years.

Institutional Sentiment and Corporate Updates

Concurrently, as SoftBank courts retail capital, at least one institutional investor has significantly reduced its stake. The Hennessy Japan Fund decreased its holding in SoftBank by 470,800 shares as of March 31, 2026—a reduction of 41.34%. This transaction represented 4.77% of the fund's total portfolio, with the average share price during the first quarter recorded at 4,548.57 yen.

In separate corporate developments at the start of the new fiscal year, SoftBank has made changes to its legal leadership, appointing a new Chief Legal Officer and Global General Counsel.