Japan’s Softbank has raced ahead of all its
peers by selling the world’s largest subordinated
notes but complying with international accounting requirements
proved a challenging task.
This was virtually the first case that a Japanese issuer
adopting the International Financial Reporting Standards
(IFRS) for issuing offshore subordinated notes has sought
to have them treated as equity.
"It is not only rare for
Japanese corporates to issue subordinated notes but
there is also no precedent for an offshore
IFRS-compliant hybrid debt offering by a
Tokyo-listed telecoms giant Softbank has become the first
Japanese issuer to have tapped the offshore high yield
perpetual bond market, raising $4.5 billion from two tranches
of hybrid US-dollar debt on the Singapore Exchange (SGX). It
has also set a benchmark for the application of the IFRS on
such an offshore bond offering.
But difficulties when it came to complying accounting