The company aims to expand its mobile business
Rakuten Group Inc., a Japanese e-commerce behemoth, is planning the world’s largest yen bond offering next week as it attempts to extend its foothold as a mobile operator.
On November 26, Rakuten will market its 2018 multi-user bond at a price of 200 billion yen ($ 1.75 billion).
Heavy investment led to losses
The corporation Rakuten built a nationwide mobile network in 2020 to compete with existing providers, but huge investments in connection resulted in $ 2.2 billion in losses last year.
Between July and September, the company’s mobile division lost 105 billion dollars, cancelling out the revenues from the Internet and fintech segments.
“Without a large boost in mobile sales, the company’s non-financial business might barely break even by 2022,” Bloomberg Intelligence credit analyst Sharon Chen said in a report.
The company plans to utilize the cash for operations, capital expenditures, and debt refinancing, according to a statement.