TU-TESL

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In the morning of November 21, Beijing time, according to foreign media reports, in order to provide working capital for Wework, a shared office start-up company, Softbank group is negotiating to raise 3000 yen (US $2.76 billion) through major Japanese banks. Softbank is planning to increase its stake in Wework's parent company, we Co, by about $3 billion. In addition, another $3.3 billion can be provided to we through loans and other means. Although Softbank has more than 2 trillion yen in assets, it is considering borrowing more to maintain a certain level of cash reserves. For banks, including Mizuho Financial Group, Softbank's main lender, this provides a rare opportunity to make money in Japan's ultra-low interest rate environment. But some of Japan's top banks, which have borrowed heavily from Softbank, are wary of further risk-taking. These banks are also investors in Softbank vision fund, which has suffered huge losses as Wework gave up its IPO and is weighing whether to invest in Softbank's second fund. The future of Wework's revival may affect their final decision. Founded in 2010, Wework has signed long-term lease contracts at offices around the world and subleased them to individuals and businesses. The company currently operates in 29 countries. Doubts about its profitability have mired its IPO plans, and the start-up has been trying to raise money for its operations. Softbank and its vision fund previously invested a total of US $9.15 billion in Wework. Last month, the Group pledged to increase investment to prevent the start-up from further losses, but the long-term outlook for Wework remains uncertain.