Rakuten boosts dollar bond issuance amount to $1.75 billion -source (updated)

Rakuten

30/01/2024 03:05

(Adds mobile business context in paragraphs 3-7)
    By Miho Uranaka
       TOKYO, Jan 30 (Reuters) - Japanese e-commerce
conglomerate Rakuten Group  4755.T  has raised the size of a
planned dollar-denominated 3-year senior note issuance to $1.75
billion from $1 billion, according to a source close to the
deal. 
    Rakuten announced the fundraising on Friday and said it
intended to use the proceeds to pay off $1 billion worth of
senior notes due in 2024. 
    Including the notes due in 2024, the group has a total of
800 billion yen ($5.4 billion) in debt redemptions due by the
end of 2025. The debt was amassed as the cost of building out
Japan's fourth mobile network carrier spiralled.
    In addition to refinancing its debt, Rakuten has also listed
its banking unit, sold off assets and issued new shares to shore
up its finances.
    The new issue will have an interest rate of around 12.25%
and terms are set to be finalised in the morning of Jan. 30,
U.S. Eastern time, according to the source, who was not
authorised to speak publicly on the matter.
    Representatives for Rakuten said they had nothing to add to
the Jan. 25 statement.
    News of the increase to the issue was first reported by
Bloomberg.
        ($1 = 147.2700 yen) 

 (Reporting by Miho Uranaka; Writing by Anton Bridge; Editing by
Tom Hogue and Edwina Gibbs)
 ((Anton.Bridge@thomsonreuters.com;))