Why SoftBank is planning bond sale of up to $20B
What's the story
SoftBank Group is in talks with investment banks over a possible bond sale of $10 billion to $20 billion. The move is aimed at refinancing a loan taken for its investment in US tech giant OpenAI, Bloomberg reported. The bond offering could be in dollars and euros and might happen as early as September.
Loan repayment
Proceeds to partially repay $40B bridge loan
The proceeds from the bond sale would be used to partially repay a $40 billion bridge loan taken earlier this year for its OpenAI investment.
SoftBank, led by billionaire Masayoshi Son, plans to invest nearly $65 billion in OpenAI by October.
The investment will be financed partly through loans and is part of a broader trend of companies raising funds for AI expansion despite concerns over credit risks and returns on these investments.
Market impact
Potential record-breaking bond offering for SoftBank
If SoftBank's bond offering hits the upper end of its target range, it would be the largest deal from any Asian company this year.
It would also mark the Japanese conglomerate's second foray into offshore bonds in 2026.
The firm had previously sold a total of $3.6 billion in dollar and euro-denominated bonds in April with an unprecedented 8.5% coupon on a 10-year dollar tranche.
Fundraising strategy
Domestic fundraise and margin loan
Along with its international bond offering, SoftBank is also looking to raise funds domestically.
The company has a record ¥1 trillion ($6.3 billion) retail bond sale in Japan scheduled for early next month.
It also recently secured a $10 billion margin loan against its OpenAI stake, which comes with covenants that could require it to post cash or repay early.