NewEconomy
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NewEconomy

SBI Holdings issues bonds with warrants to invest in blockchain and other fintech technologies

SBI Holdings announced on July 7 that it will issue euro yen-denominated convertible bonds with stock acquisition rights (convertible bonds) due 2025. The purpose of issuing this convertible bond is to raise funds to promote the business strategy of fintech fields such as blockchain, which SBI group is working on, and to strengthen the profitability of the group as a whole.

Convertible bonds are bonds that can be converted into shares of the issuing company. The number of shares that can be converted is predetermined, so if the stock price rises after the convertible bonds are purchased, the company will be able to convert them into shares.

You can get your shares at a discount to the market price. Furthermore, if the stock price falls after the purchase of a convertible bond, if you continue to hold the bond without converting it into equity, you can receive the face value of the bond at maturity just like a normal bond. Therefore, the minimum price of the bond is guaranteed.

The convertible bonds have a zero-coupon (yield) and are sold at a higher price than their face value, providing the issuer with a low-cost, stable source of funding, according to the release.

The funds raised will be used to offset any reduction in cash on hand from previous business initiatives and the remainder will be used to invest in advancing the business strategy, according to the release.

The company’s business strategy is to invest in blockchain, AI, and other fintech businesses, contribute to regional development, and promote the Neo-Bank concept, with the aim of creating businesses that offer convenience and public benefits not found in traditional financial services.

SBI Holdings focuses on three main businesses: the financial services business, which provides financial products and services such as securities and banking services; the asset management business, which invests in IT and biotechnology companies; and the biotechnology business, which conducts research and development of medical and cosmetic products.

In addition, the SBI Group’s other businesses include investment in the fintech business area. and other promising ventures in the AI and blockchain fields, as well as “FinTech funds”. The SBI AI&Blockchain Fund, established to invest in companies, and others And more recently, innovative technologies and technologies in a wide range of industries, including health care, infrastructure, food, and agriculture. To create a new fund to invest in new growth industries, such as services, and to contribute to regional development The company is working towards the establishment of Regional Development Partners, Inc.

Recent news from the company’s crypto-asset (virtual currency) related business includes the announcement of plans to establish Japan’s first crypto-asset fund in June and a $30 million (¥3.2 billion) investment in the UK-based B2C2, a crypto-asset market maker business, which took place on June 2 this month.

(images:iStock/BadBrother・Panuwat-Sikham)

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