Loan and Guarantee Support for Subsidiaries and Affiliates
First written in FY2017-Q2. 5 of 10 entries say "Materialised", first in FY2017. Latest entry: FY2024-Q3.
SoftBank Group Corp. moved to the "Worse" side of this theme in 2023, 3 years before the typical company in this theme (2026).
The whole theme swung hardest in 2026: 8 of 9 companies on the "Worse" side.
1 other company's latest entry also says "Materialised".
- FY2024-Q3MaterialisedAnnual report
「The guarantee was honored during the third quarter.」
The guarantee facility of up to US$1.43 billion for WeWork was honored, and SVF 2 recognized a US$1.41 billion loan, including a right of recourse. A related loss of ¥42,072 million was also recorded, and the credit support risk materialized as an actual loss and financial support. - FY2024-Q2MaterialisedAnnual report
「On 6 November 2023, after the end of the quarter, WeWork Inc., an SVF portfolio company, filed for proceedings under Chapter 11 of the U.S. Bankruptcy Code.」
The credit support risk associated with investments in WeWork, guarantees and bond holdings materialized when the company filed for proceedings under Chapter 11 of the U.S. Bankruptcy Code. - FY2024-Q1MaterialisedAnnual report
「During the 3-month period ended 30 June 2023, the unsecured notes issued by WeWork were exchanged for newly issued WeWork shares and convertible bonds. As a result, the unsecured notes were derecognized and a loss of ¥21,579 million was recorded.」
The unsecured notes related to credit support for WeWork were exchanged for shares and convertible bonds, resulting in a loss of ¥21,579 million. - FY2023-Q3WorsenedAnnual report
「During the nine-month period ended December 31, a total loss of ¥250,607 million was recorded.」
For commitments to purchase WeWork's unsecured notes, payment guarantee facility and secured senior notes, a total loss of ¥250,607 million was recorded against a backdrop of widening credit spreads, increasing the credit support risk. - FY2021-Q3MitigatedAnnual report
「For the loan commitment related to the purchase of unsecured notes issued by WeWork, expected credit losses were lower than at 31 March 2020, partly because the credit spreads on WeWork bonds traded in the market had improved. Accordingly, a gain on reversal of loss allowance of ¥46,918 million was recorded.」
Expected credit losses related to credit support for WeWork declined, and a ¥46,918 million allowance related to the purchase of unsecured notes was reversed. - FY2021-Q2MitigatedAnnual report
「Due in part to an improvement in the company's credit risk, reversals of ¥21,466 million and ¥58,364 million, respectively, were recorded.」
With respect to the credit risk associated with financial guarantee contracts and loan commitments for WeWork, loss allowance reversals were recorded, partially reducing the risk associated with credit support. - FY2021-Q1MitigatedAnnual report
「Due in part to an improvement in the company's credit risk, reversals of ¥3,472 million and ¥43,485 million, respectively, were recorded.」
With respect to the credit risk associated with the guarantee facility for WeWork and the purchase of unsecured notes, loss allowance reversals were recorded, partially reducing the risk. - FY2020-Q3MaterialisedAnnual report
「In addition to providing credit support for a US$1.75 billion letter of credit facility provided by financial institutions for WeWork, a wholly owned subsidiary of the Company other than SoftBank Vision Fund will underwrite or arrange (b) up to US$1.1 billion of secured senior notes and (c) up to US$2.2 billion of unsecured notes issued by WeWork.」
The risk of financial support for subsidiaries and portfolio companies materialized through a US$1.75 billion guarantee facility for WeWork, up to US$1.1 billion of secured notes and up to US$2.2 billion of unsecured notes being underwritten or arranged. - FY2017MaterialisedAnnual report
「ソフトバンクロボティクス㈱ was insolvent, with negative net worth of ¥31,420 million as of the end of March 2017. The company received sales support and financial assistance from the Company.」
The subsidiary support risk was specifically disclosed through sales support and financial assistance for the robotics subsidiary, together with negative net worth of ¥31,420 million. - FY2017-Q2First statedAnnual report
「The Group may provide support, such as loans and debt guarantees, to subsidiaries and other companies when it deems such support necessary. For example, if Sprint or Brightstar is unable to develop its business as expected at the time of acquisition, is unable to generate sufficient synergies with other Group companies, or requires more funding than expected to develop its business, the Group may provide support such as loans.」
The risk that loan, debt guarantee and other support for Sprint and Brightstar could affect operating results and financial condition is identified.