This site uses cookies to provide you with a great user experience. By using BondbloX, you accept our use of cookies.
Rakuten Group is considering a reorganization of its fintech businesses into one group to strengthen collaboration and customer acquisition across areas. As per the press release, Rakuten Group and Rakuten Bank have entered into an MOU, set to take effect in October. Since Rakuten Bank is controlled by Rakuten Group, the transaction would fall under the ‘material transaction’ category and would require approval from Rakuten Bank’s shareholders. After the successful integration, Rakuten Bank would continue to be listed on the exchange and the Group will drop plans to list Rakuten Securities. Rakuten has been focusing on raising cash by issuing debt and equity and selling assets after its finances suffered due to unsuccessful forays in the phone carrier business. Rakuten’s shares rallied by 3% by yesterday’s close of trading.
In related news, Rakuten is considering launching a $1.25bn bond with a 5Y tenor. The debt offering comes after the company sold $1.8bn of bonds in January this year. The proceeds will be used to redeem the debt maturing in 2024, according to a source.
Rakuten’s 11.25% 2027s issued in January were trading stable at 106.2 cents on the dollar, yielding 8.73%.
For more details, click here