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Rakuten to issue $1.8bn in bonds to shore up mobile business

Company's biggest-ever offering comes after downgrade to junk rating

Rakuten chief Hiroshi Mikitani at a company presentation. The Japanese e-commerce company has struggled to overcome rising costs in its mobile phone business. (Photo by Mizuho Miyazaki)

TOKYO -- Rakuten Group is preparing to issue 250 billion yen ($1.87 billion) in bonds, Nikkei learned on Friday, the largest one-time issuance in Japanese e-commerce company's history as it struggles to overcome mounting costs in its mobile phone business.

The two-year bonds, with a maturity date of Feb. 10, 2025, will carry a coupon rate in the range of 2% to 4%. The bonds are scheduled to receive an A-rating from the Japan Credit Rating Agency on Jan. 27, when the company will also finalize the terms of the issuance.

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