Rakuten Group plans to raise up to 300 billion yen ($2 billion) for its wireless unit by selling and leasing back equipment through a consortium led by Australia’s Macquarie Asset Management. Announced Thursday, this move represents a strategic shift for Rakuten, as it explores funding avenues beyond its traditional reliance on bonds.
Under the agreement, Rakuten Mobile will continue to operate the leased assets over a 10-year period, with terms to be finalized. The wireless subsidiary is set to receive between 150 billion to 300 billion yen from the transaction, which will fund the development of the “platinum” band. This frequency range is aimed at improving service quality, with commercial services already launched in June.
Rakuten has invested over 1 trillion yen in building its wireless infrastructure since its launch in 2020 and faces nearly 100 billion yen in capital expenditures for 2024. Historically, these have been financed primarily through bonds, placing significant debt repayment pressures on the company. The proposed sale and leaseback deal would allow Rakuten to redirect cash flow from its e-commerce and financial operations to reduce its debt burden.
Rakuten’s mobile business has shown signs of recovery, with user numbers approaching 7.5 million, bolstered by strong corporate plan sales.
