RIYADH: Japan’s Softbank is finalizing a $4 billion loan from a group of lenders led by US private equity firm Apollo Global Management, to cover turbulence in its portfolio.
The loan would be secured by SoftBank’s second Vision Fund, the Wall Street Journal reported, citing people familiar with the matter.
The fund’s roughly $40 billion pot includes stakes in 150 companies such as Indian e-commerce giant Flipkart, digital-banking startup Revolut, and Cameo, where celebrities sell personalized messages, the sources said.
The deal confirms the Japanese conglomerate’s need for money and Apollo’s push into lending.
The loan will be used for a range of bets secured by Softbank’s second Vision Fund valued at $38 billion — as several of its holdings have lately gone public — with the aim of turning those investments into profits.
Softbank reported a $3.5 billion quarterly loss in November due to bad bets on Chinese tech company Didi Global.
Skeptical about bad bets, investors drifted away from the second fund causing Softbank’s cash to fall short in supply.
“We are in the middle of a blizzard,” SoftBank CEO Masayoshi Son said.
