Sony Borrows 80 Bln Yen for First Bank Loan in 10 Yrs

Sony Corp., the world's second- largest consumer electronics maker, said it took out an 80 billion yen ($698 million) syndicated loan last week, its first bank borrowing in 10 years, to diversify funding sources.

The three-year floating-rate loan, which came from more than 20 Japanese lenders, pays 4 basis points more than the London interbank offered rate, or Libor, for six-month yen borrowings, said Mizuho Financial Group Inc., the loan arranger. The six-month yen Libor was last quoted at 0.44750 percent.

Sony tapped the country's expanding syndicated loan market as it offered a cheaper source of cash at a time when investors in corporate debt are demanding higher yields before an expected rise in Japanese interest rates this year. The fund-raising, which ended up bigger than initially planned, offered more flexibility than bonds, said Shinichi Tobe, Sony's spokesman.

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DC RID3R6534d ago

i just hope these guys know what they're doing man. we don't want another ENRON now do we?

Marriot VP6534d ago

take note, this is a huge loan before the insane loss in PS3's per unit. How ready is Sony to loose 400 bucks per console. When they get to 10 million that'll equal == 4 BILLION. Compared to this loan of 700 million really shatters my confidence in them being able to pull off blu-ray.

now I know somebody's gonna spit out a last years revenue so let it begin.

Marty83706533d ago

Hav u read the full article,it for axpansion to there manurfacuring plants of LCD's(this is a huge groth industry and worth the joint investment),Also will help off the cost of makin PS3,Its around $150-$200 that sony may loss per console not $400.Also expect Sony to advertise PS3,Bluray,LCD's etc which all costs alot.

TheMART6533d ago

it must be more then 150 to 200 a console.

MS is already loosing 175 dollars a console and they even don't have a BetaBluRay player included.

A stand alone BR player costs selling price around 1.000 to 1.200 Euro. Do you really think costprice of a BR player including all the other hardware can be so cheap? Don't think so.

And even if it is 200 dollars.

That will be a massive 2 Billion dollars loss per 10 million PSZero's sold.

No Sony is going the wrong way for sure

EnforcerOfTheTruth6533d ago

You obviously don't have a clue what you are talkin about. Do you really think that only the Blu-Ray drive in the standalone player costs $1000-$1200? Dont you know that every HD-DVD and Blu-Ray player also have processors? In the PS3 already Cell does this job and if Samsung can bring a Blu-Ray burner for around $500, it appears reasonable that the Blu-Ray drive doesn't cost Sony more than $200.

TheMART6533d ago

You obviously even have a lesser clue my friend.

HD-DVD for example stand alone player sells for 500 Euro's. But cost 700 Euro's/dollars to make.
They sell with loss.

BetaBluRay probably also or at least cost price. So 1.000 to 1.200 Euro's/dollars cost price.

There is no, I repeat, there is NO way that costprice of the BetaBluRay cost 200 Euro's/dollars

achira6532d ago

the Mart you are wrong. ms is a software company, they must buy all the stuff. but sony has its own facturys, and can produce the stuff a lot cheaper.

+ Show (1) more replyLast reply 6532d ago
Marty83706533d ago

#3.1 - Do the sums,if PS3 costs around $750-$800 to make.And Sony sells PS3 for $600(60Gb),that a lost of around $150-$200 and less on the $500(20Gb) PS3.

TheMART6533d ago

Would you give some links that says it's this cheap? And please not one lame link only Sony trying to give the shareholders some air

EnforcerOfTheTruth6533d ago

LOL I laugh my ass off, how can he give you a link if nobody besides Sony knows the PS3 manufacturing costs. Xbug, get a brain first and then come back here.

TheMART6533d ago

THe scenario which is plausible:

CPU 230 dollar
BR 300 dollar
GPU 140 dollar
RAM 65 dollar
HDD 40 dollar
Other 130 dollar

total 905 dollars cost price. That's not included shipping and other marketingcosts per console.

That makes me 300+ dollar loss @ Launch window for sure

TheMART6533d ago

So if he can't provide a link himself, how can he ever say then that it only costs 750 dollar to make?

Quit a dumb remark you made there, it works either way

EnforcerOfTheTruth6533d ago

That's just reasonably thinking. The 360 CPU and GPU ain't much more cheaper than Cell and RSX, the only big difference is the Blu-Ray drive and that's in the $200 price difference. And I highly doubt that MS is still losing $175 per console, this was at launch, almoust a year ago.

TheMART6533d ago

You can only cut costs when the production changes. The CPU is still on the same level, although they're testing with a smaller one.

Not implemented though. The other parts, if you look into it deeper instead of talking about it without having a clue, didn't lower so much in price. Ram, DVD/HDD al stay about the same in costs. The larger part to cut on is CPU. That will be done in 2007. So the loss will be still about the same on each console.

Furthermore, to think that 200 dollars for a BR player is cost you're wrong. The HD-DVD player is sold for 500 dollars, but costprice is 700 dollars. Even that is cheaper then the BR drives. It is told that they also are sold around or even under cost price.

Read first and then talk. The 360 CPU is cheaper to produce then the Cell. Furthermore, MS will earlier have reached the smaller CPU with less cost then Sony.

GPU is about the same price on both consoles.

So yep, the CPU of the PS is more expensive, much more expensive. The BR drive also cost more then 200 dollars to make.

The 300 dollars loss per unit isn't so strange @ launch window and who knows for how long

+ Show (3) more repliesLast reply 6533d ago
Islandkiwi6533d ago

A bond is a loan generated by the company. You (the investor) buy a bond, in return you get a return on it. Bonds mature within a certain period of time.

A loan is the company borrowing money from a financial institution (banks). In this case 20 banks.

I don't really have much to say. Obviously Sony felt they were getting a better rate with the loan, the money isn't even being used for PS3 stuff...what's to say?