SoftBank Group has managed to cut underwriting costs for yen-denominated retail bonds for the first time in a decade, underscoring the market’s view that credit quality is improving.
Billionaire Masayoshi Son’s company paid brokers ยฅ1.10 per ยฅ100 to underwrite ยฅ550 billion ($3.5 billion) of seven-year bonds for individual investors, according to a company filing. That was down from the ยฅ1.25 interest rate it has paid on its retail bond sales since 2014, including the most recent deal in March, data compiled by Bloomberg showed.
Debt rating agencies have upgraded SoftBank Group’s rating as the Tokyo-based company’s investment income begins to stabilize. Japan Credit Rating Agency in April raised the company’s debt rating to A from A-, the first upgrade in more than a decade, while S&P Global Ratings in May raised SoftBank’s rating to BB+ from BB, still a step below investment grade .
