By Chibuike Oguh

(Reuters) – SoftBank Group Corp borrows nearly $4B from Apollo Global Management, a private equity firm (NYSE:) Inc ). This comes as SoftBank Group Corp seeks more cash after facing financial difficulties.

According to a source, the loan will be paid by SoftBank Vision Fund 2 at $40 billion.

Sources say that the Japanese investment firm will offer to pledge some of its shares in technology companies for the loan. The source requested anonymity because these are private discussions.

The source stated that the loan will be provided by Apollo and its insurance affiliate Athene Holding Ltd, as well as other mutual funds and endowments, and financial institutions.

SoftBank experienced a rapid change in fortunes during the last year. Its stock and portfolio values plummeted after the COVID-19 pandemic. The group was forced to make asset sales.

Grab Holdings Ltd, the portfolio company of the conglomerate, has experienced a 44% drop in its stock price since going public this month. SoftBank’s sale of British chip technology provider Arm (NASDAQ:) Corp to Nvidia has run into regulatory hurdles.

After the expiry or partial closure of lock-up periods, Uber Technologies (NYSE;) and DoorDash Inc have been sold to raise capital.

China’s clampdown on sprawling tech sector has taken the shine from e-commerce firms as well. Alibaba SoftBank’s prized bet is Group Holding Ltd (NYSE:).

Wall Street Journal first reported on Tuesday the borrowing plans.