SoftBank Mobile subsidiary issues first euro bonds, raising concerns over parent company-related risks

Golden Ten Data reported on April 10 that the mobile business subsidiary of SoftBank Group began issuing its first euro-denominated bonds on Friday, with investors focusing on risks associated with its parent company’s aggressive move into artificial intelligence. According to informed sources, the company is issuing euro-denominated bonds with maturities of six and ten years. The spread for bonds maturing in June 2032 is 135 to 140 basis points above the mid-market rate for medium-term swaps, while the spread for bonds maturing in June 2036 is about 170 basis points higher. CreditSights analysts noted that SoftBank’s relatively stable position in Japan’s highly concentrated telecom market provides support for its credit, but investors remain concerned about risks related to its parent company.