SoftBank Borrows $8 Billion Backed by Alibaba Holding
- So-called margin loan one of the biggest of its kind: sources
- Top U.S. and European banks among at least 10 lenders to firm
Photographer: Akio Kon/Bloomberg
SoftBank Group Corp., the Japanese technology giant, used its stake in online retailer Alibaba Group Holding Ltd. as collateral for an $8 billion loan from a group of banks in what is one of the biggest deals of its kind, according to people familiar with the matter.
Morgan Stanley, Citigroup Inc., Goldman Sachs Group Inc., Bank of America Corp. and JPMorgan Chase & Co. were among at least 10 banks that helped to make the so-called margin loan, which is guaranteed only by Softbank’s Alibaba holding, said the people, who requested anonymity as the details aren’t public. The deal won’t be reflected in the Tokyo-based company’s debt, which may help shield it from a ratings downgrade, and could help its plans to sell shares in a domestic subsidiary, the people said.