SoftBank, the Japanese technology conglomerate, astonished equity-linked bond market participants this week by executing a deft trade, arranged by Credit Suisse, that recovered all its €900m investment in Wirecard, the controversial German payments processing company, while leaving it with upside. Aidan Gregory and Jon Hay report.
Using a Credit Suisse vehicle, SoftBank issued a €900m bond exchangeable into Wirecard shares at a much higher share price than the one SoftBank had agreed to invest at. The deal protects SoftBank from Wirecard’s credit risk, but leaves it with most of the equity upside.
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