SoftBank which previously borrowed $4bn from Apollo Global Asset Management in December 2021, has secured an additional $1.1bn loan backed by holdings of SoftBank Vision Fund 2, said sources. This brings the total loans from Apollo to $5.1bn. The unitranche loan (which has an interest rate of roughly 5%) represents the largest of its kind in the private credit market as per Bloomberg data. Apollo led the deal, which has seen participation from endowments, mutual funds, insurers, and financial institutions. SoftBank Vision Fund 2 fund had a fair value of $48bn at end-December 2021. Regionally it has invested 41% in the US, 26% in EMEA,12% China, 9% in India and the remainder elsewhere in Asia.
Separately, SoftBank is eyeing a valuation of $60bn for the IPO of semiconductor company Arm Ltd. SoftBank has asked leading banks for the IPO to underwrite a margin loan of about $8bn. SoftBank had acquired Arm for $32bn in 2016. In September 2020, it announced a deal to sell Arm to Nvidia for $ 40bn but due to regulatory pressure the deal did not get through.
SoftBank’s dollar bonds were slightly higher – its 4.625% 2028 were up 0.06 points to 88.91 and yielding 6.83%.