SoftBank Group (TYO:9984) will issue 200 billion yen in hybrid notes in Japan with an optional interest payment deferral, according to a Friday filing on the Tokyo Stock Exchange.

The 35-year notes carry a fixed annual coupon of 4.556% for the first five years before switching to a floating rate based on one-year Japanese government bonds plus a 3.4% spread and step-up provisions.

The securities, rated BBB+ by Japan Credit Rating Agency, will be offered mainly to institutional investors through underwriters including Daiwa Securities, SMBC Nikko, Mizuho Securities and Nomura Securities.

Proceeds will help refinance 177 billion yen in domestic hybrid notes due for early redemption in February 2026 and fund part of SoftBank's installment for its 2023 purchase of Arm Holdings shares from its Vision Fund 1.