SoftBank Group (TYO:9984) has filed to issue hybrid notes in Japan, targeting institutional investors, with features including optional interest deferral and a 35-year term, according to its Tokyo bourse filing on Wednesday.

The notes, with a preliminary BBB+ rating and denomination of 100 million yen each, will have a fixed interest rate for the first five years before switching to a floating rate, including step-up provisions over time.

Proceeds will partly fund the early redemption of domestic hybrid notes maturing in February 2026, while the notes may qualify for 50% equity treatment by rating agencies due to their subordinated structure.

The offering, underwritten by major Japanese securities firms, is exclusive to Japan and complies with local regulations, excluding US investors under Securities Act restrictions.