SoftBank Corp. Series 1 Bond-Type Class Shares

SoftBank Corp. Series 1 Bond-Type Class Shares represent a distinctive equity instrument designed to combine features of both traditional equity and bonds. Issued on November 1, 2023, these shares form part of SoftBank’s capital management strategy, aiming to enhance equity capital while minimizing dilution or impact on existing common shareholders. The Series 1 Bond-Type Class Shares do not grant voting rights or the option to convert to common equity, distinguishing them structurally from ordinary shares. Instead, they entitle holders to a fixed annual dividend rate—set at 2.5% for the initial five-year period from issuance—providing stable returns similar to fixed-income securities. After this period, the dividend policy may adjust subject to market conditions and company discretion. SoftBank retains the option to redeem these shares for cash, further underlining their hybrid nature between debt and equity. Targeted primarily at investors seeking regular income rather than capital appreciation or control, these shares play a unique role in SoftBank’s balance sheet optimization, supporting growth investment while offering a predictable return profile to shareholders.