SoftBank borrows $8 billion using its Alibaba stake

Franchise India Bureau April 07 2018 - 2 min read
SoftBank borrows $8 billion using its Alibaba stake
The loan, guaranteed solely by its stake in Alibaba, won't be reflected in SoftBank's debt, likely protecting it from a potential ratings downgrade.

Japan's SoftBank Group Corp has borrowed $8 billion margin loan backed by its stake in Chinese online retailer Alibaba Group Holding Ltd, Bloomberg reported, citing people familiar with the matter.

According to the report, the loan, guaranteed solely by its stake in Alibaba, won't be reflected in SoftBank's debt, likely protecting it from a potential rating downgrade.

In a margin loan, a borrower secures the debt by pledging an asset with the understanding that they'd need to pay up if the value of the collateral declines, the report said.

SoftBank, which has a 29 percent stake in Alibaba, could not immediately be reached for comment, outside regular business hours.

Entrepreneur Magazine

For hassle free instant subscription, just give your number and email id and our customer care agent will get in touch with you

or Click here to Subscribe Online

Subscribe Newsletter
Submit your email address to receive the latest updates on news & host of opportunities