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Japanese banks don’t love WeWork bailout

Masayoshi Son (Credit: SoftBank Group)

SoftBank’s talks to secure $3 billion from Japan’s three biggest banks for WeWork have stalled as the lenders have hit internal lending limits, Reuters reported.

  • Masa persists: The banks are seeking ways to provide the financing while offsetting exposure. One option is to use some of SoftBank’s 26% stake in Chinese e-commerce giant Alibaba as collateral. Another option to spread the risk is through a syndicated loan, which would be time-consuming and could potentially delay the financing.
  • Worth Noting: The Japanese tech conglomerate is now likely to enter the new year without the WeWork financing in place. The banks are clearly concerned about the risks involved in rescuing the co-working company.
  • Be Smart: Goldman Sachs recently arranged a $1.75 billion line of credit to WeWork as part of the SoftBank bailout. Interestingly, SoftBank was listed as the borrower in the deal, while WeWork will be a co-borrower.

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