SoftBank Raises $22 Billion by Selling Alibaba Derivatives
- SoftBank has used Alibaba forward contracts since 2016
- SoftBank netted $13 billion via Alibaba derivatives in 2021
This article is for subscribers only.
SoftBank Group Corp. has raised as much as $22 billion in cash through the sale of prepaid forward contracts using Alibaba Group Holding Ltd. shares, the Financial Times reported, citing filings it has seen.
SoftBank has this year executed the sale of about a third of its Alibaba stake through these contracts, a type of derivatives that allows the Japanese company to raise cash immediately while retaining the possibility of holding on to the shares, the report said.