SoftBank eyes up to $20B bond sale to fund OpenAI bet

SoftBank Group is in discussions with investment banks about a bond offering of $10 billion to $20 billion to help refinance a $40 billion bridge loan used to fund its expanding investment in OpenAI, according to Bloomberg and people familiar with the matter cited by The Straits Times.straitstimes+1

The offering could be denominated in dollars and euros and may come as early as September, though talks remain ongoing and details could change. At the upper end, the deal would be the largest bond sale by an Asian company in 2026, according to Bloomberg data.bloomberg

Financing the AI Bet

SoftBank, the junk-rated Japanese conglomerate led by Masayoshi Son, is slated to invest close to $65 billion in OpenAI by October, funded in part by loans. The company secured a $40 billion bridge loan earlier this year for that purpose, and the potential bond sale would partly repay that facility.straitstimes

SoftBank is also exploring a Rule 144A structure for the first time in more than a decade, which would allow the notes to be sold to U.S. institutional investors and help tap a larger pool of capital.straitstimes

"We are considering various options to refinance the bridge loan, but nothing has been decided, including the amount for each," a SoftBank spokesperson said.straitstimes

The company has already raised $1.5 billion from a dollar-denominated bond offering and 1.75 billion euros from a euro-denominated offer in April, partly to repay the bridge loan.reuters

Record Domestic Bond Issuance

Separately, SoftBank announced a record 1 trillion yen ($6.3 billion) retail bond sale in Japan — the largest retail bond offering ever by a Japanese company. The seven-year bonds are expected to be priced on September 4, with an indicative coupon range of 4.3% to 4.9%. Proceeds will fund AI-related investments and repay previously issued bonds.bloomberg+2

SoftBank's Chief Financial Officer Yoshimitsu Goto told The Yomiuri Shimbun that the company will "aggressively" allocate funds to AI and other growth investments, with 600 billion yen of the 1 trillion yen earmarked for AI, including physical AI systems in which AI models autonomously control robots.marketwatch

Japan's Expanding Bond Market

The domestic issuance reflects a broader trend. Retail corporate bonds issued in Japan in fiscal 2025 totaled 2.82 trillion yen, up about 150% from five years prior, according to Nomura Securities ↗ 0.79%. Rising interest rates have made bonds more attractive to individual investors as a medium-risk alternative to equities.marketwatch

"Corporate bonds are gaining attention as a reliable way to secure stable yields," said Kazuma Ogino of Nomura Securities.marketwatch