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FINANCE

Japan’s Monex sells ¥500 mn SoftBank bonds in less than three minutes

SoftBank bond

SoftBank hired 12 brokerage firms including Nomura Securities for the bond sale

Brokerage firm Monex Group recently sold out around ¥500 million worth of SoftBank bonds to Japanese individuals in less than three minutes time. According to Shinichiro Yamada, general manager in Monex Group’s products department, the firm began selling the bonds at 9 am on Monday and ran out of bonds to sell at exactly 9:02:26.

On average for the brokerage to sell out, it takes about two weeks’ time. The country also recently witnessed a fierce typhoon which caused major disruptions and blackout throughout the country.

Shinichiro Yamada told the media that, “The quick sellout, despite the typhoon, shows how strong the demand is for higher interest rates. We have sold IPO shares online before and now we see it’s convenient for investors to purchase the bonds through the internet too.”             

For the bond sale, SoftBank hired 12 brokerage firms which include local securities firms and online brokers. The list also includes Nomura Securities, which is one of Japan’s biggest brokerage firms.

SoftBank is raising a total of ¥400 billion in the most recent bond sale by Monex and other brokerages, pricing the seven-year notes at a 1.38 percent interest rate. It sold another ¥500 billion of bonds in April.

SoftBank and its CEO Masayoshi Son attracted global coverage when it announced the multibillion-dollar Vision Fund in 2017. In the last two years, SoftBank has invested in startups such as Uber and WeWork. However, both companies appear to be struggling. While Uber’s stock prices are taking a hit after it went public, WeWork’s valuation fell by more than half, just ahead of its IPO.

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