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SoftBank, led by Masayoshi Son, is aiming to raise ¥120B ($808M) through a unique investment model that merges features of bonds and shares.

  • Up for grabs: These securities which are like bonds but are actually shares, are set to launch on the Tokyo Stock Exchange. However, these aren’t your typical shares. Despite their share-like qualities, they don’t offer voting rights or the option to convert to standard shares.
  • Here’s the catch: Investors are promised an enticing 2.5%-3% dividend rate for the first five years. Once this period ends, SoftBank holds the right to buy back these securities at the initial price.
  • Reasons to buy: There are some compelling reasons investors might be drawn to this unique offer—SoftBank’s strong reputation, the attractive yields particularly in a market where Japan’s interest rates are low, and eligibility for ‘NISA’ tax exemption, sweetening the deal for investors.
  • Funding goals: The funds garnered through this venture will fuel SoftBank’s ambitious projects, ranging from AI content generation to social infrastructure development and new service offerings.
  • Lagging interest rates: As local interest rates lag behind those globally, Japanese investors’ risk tolerance is increasing. This investment product could attract more domestic investments, helping to stabilize the yen.

The specifics of the deal are yet to be finalized, with the possibility of 30 million shares up for grabs at ¥4,000 apiece. The final terms are expected to be settled by October 13th. Nomura Securities, Mizuho Securities, and Daiwa Securities stand poised to manage the sale.

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