SoftBank Corp. sold the first bond-type class shares in Japan’s public markets at the bottom end of the marketing range, pointing to strong demand from yield-hungry investors.
(Bloomberg) — SoftBank Corp. sold the first bond-type class shares in Japan’s public markets at the bottom end of the marketing range, pointing to strong demand from yield-hungry investors.
The telecommunications unit of SoftBank Group Corp. said on Friday it priced ¥120 billion ($800 million) of bond-type class shares at an annual dividend rate of 2.5%, according to a filing to the financial authorities.
The securities, which are like bonds but are actually shares, will be listed on the Tokyo Stock Exchange in November. They don’t give holders voting rights, and can’t be converted to common stock, causing no dilution.
SoftBank, which has strong name recognition in Japan, attracted demand for the offering as interest rates remain near rock-bottom levels in the Asian nation. Individual investors in Japan have shown more willingness to take risks, especially amid rising wages and increased awareness about the revamped Nippon Individual Savings Accounts, which the securities will be eligible for.
The dividend rate was at the bottom end of the marketing range of 2.5%-3%, and compares with an average yield of 0.92% for yen-denominated securities in a Bloomberg index.
Nomura Securities Co., Mizuho Securities Co. and Daiwa Securities Co. managed the sale.
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