Softbank Group Corp is checking with Japan’s top three banks to loan 300 billion yen ($2.8 billion) to be used as fund for support of US startup WeWork, according to three sources who refused to give identity.
Although no official talks have begun, Softbank has approached Mizuho Financial Group Inc, Mitsubishi UFJ Financial Group Inc, and Sumitomo Mitsui Financial Group Inc.
A Softbank spokesperson said that the main option was a loan although nothing had been agreed to yet. All three banks refused to comment.
In October, Softbank has offered $9.5 billion lifeline to take control of WeWork.
With Japan’s ultra-low interest rates, Softbank has given the three Japanese banks a rare profit opportunity at home. However, these top three banks have been cautious of getting involved with the conglomerate, since the turmoil involving WeWork.
“We have to be very careful about this,” said one of the sources. “Especially if the money goes to WeWork, it will take a long time to conclude the process.”
Softbank fell to its first quarterly loss in 14 years, dragged by the $8.9 billion hit at Vision Fund. CEO Masayoshi Son admitted the fall was due to poor investment judgment and being blind to problems at startup WeWork.
Japan’s Finance Minister Taro Aso expressed worries about the yen’s continual rise, calling it “rapid” and hinting at the strong currency’s impact on exports as Japan struggles through a recession. The yen’s ...
June had seen Japan’s industrial output breaking its four-month slump. The recuperation could be attributed to a modest recovery seen in broader business and consumer activity after the world’s third-biggest economy suffered from ...
Indonesia on Wednesday rolled out a 100 trillion Rupiah ($6.92 billion) loan guarantee scheme for prioritized businesses to keep them afloat as the COVID-19 situation continued to worsen around the world, the country’s finance minister ...
Japan’s first-quarter business spending came smaller than what was initially estimated, revised data showed on Monday. This underscored a sharper damage that the novel coronavirus pandemic had inflicted on the world’s third-biggest ...
Bloomberg News reported on Thursday that Elon Musk’s Space Exploration Technologies Corp. (SpaceX) is in talks to raise new funds at a valuation of $44 billion. The aerospace company said that it is in discussions with a number of investors ...