SoftBank draws over $20 billion demand for bonds to fund OpenAI
Business
SoftBank just got over $20 billion in early demand for its latest "junk" bond sale, aiming to raise more than $11 billion.
The cash will help fund its massive OpenAI investment, nearly $65 billion committed so far under billionaire Masayoshi Son.
The deal includes both dollar and euro bonds, showing just how much global interest there is.
Bonds offer up to 10% yields
Investors are excited because these bonds could offer record-high yields, up to 10% for the dollar notes and mid-8% for the euro ones, which is pretty rare.
Big banks like Citi, Goldman Sachs, and JPMorgan are running the show.
This comes as borrowing costs are up worldwide due to inflation, making SoftBank's move bold (and a bit risky) in today's market.