SoftBank to lend up to $20bn to employees to invest in new Vision fund

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SoftBank to lend up to $20bn to employees to invest in new Vision fund

SoftBank Group corp., a Japanese multinational conglomerate holding company headquartered in Tokyo, had been exploring an option to lend as much as $20 billion to its employees alongside CEO Masayoshi Son to purchase stakes in its second vision fund, a Wall Street Journal report published on Saturday, the 17th of August 2019, had revealed citing people familiar with the issue.

Aside from that, according to Saturday’s (August 17th) Wall Street Journal report, the Japanese conglomerate’s CEO, Son, would likely to receive more than half of the amount in debts to invest on SoftBank’s second Vision investment fund, adding that an extravagant move such as this would be uplifting its employees’ accountability, nonetheless, the fund would be cancelled if a manager departed or was found engaging in some kind of “reckless deal”.

On top of that, the Wall Street Journal report had also added that the Japanese conglomerate’s latest loan would come along with an interest rate of 5 per cent. As of now, the government of Kazakhstan was expected to contribute a lump-sum of $3 billion, while multinational lenders like of US-based Goldman Sachs, UK’s Standard Chartered and Japan’s Mitsubishi UFJ Financial Group Inc.

had expressed strong intent to invest hundreds of millions of dollars in SoftBank’s second vision investment fund. Meanwhile, citing of the sources, the report added that SoftBank officials had been in advance staged talks with multiple pension funds and insurers including some Taiwan-based investment funds as fund-raising attempts for its second Vision project, while total investment was expected to cross $30-billion mark, nonetheless, SoftBank officials declined to comment over the subject matter while being asked.