SoftBank Group (SFTBY) is planning its second large-scale offshore bond issuance of the year, targeting up to $20 billion in financing, as it addresses funding pressures stemming from its massive investment in OpenAI. This move not only represents proactive financial maneuvering by SoftBank to repay bridge loans while operating under a junk credit rating, but also reflects the high costs companies are bearing to secure capital amid the current global AI investment boom.
According to sources familiar with the matter, the issuance may be denominated in U.S. dollars and euros and could launch as early as September this year, though details are still under discussion and subject to change. Proceeds from this bond sale will be used in part to repay the $40 billion bridge loan SoftBank obtained earlier this year for its OpenAI investment. Under current plans, SoftBank, led by Masayoshi Son, is set to invest a cumulative total of nearly $65 billion into OpenAI by October this year, with part of that funding originating from loans. A SoftBank spokesperson responded via email that the company is evaluating multiple refinancing options for the bridge loan, but no decisions have been made, including regarding the amount of funding to be raised through various channels.
SoftBank Group currently holds a junk credit rating. Notably, SoftBank plans to adopt Rule 144A (a private placement format for U.S. institutional investors) for this issuance, marking the company’s first use of this format in international bond offerings in over a decade. This approach would allow SoftBank to access a broader pool of capital, potentially boosting demand for the bonds. If the issuance reaches the upper end of its target range, it would set a record for the largest bond issuance by an Asian company so far this year and would also mark SoftBank’s second foray into the offshore bond market in 2026. In April this year, SoftBank issued a combined total of $3.6 billion in dollar- and euro-denominated bonds (Stock Code: 9984), with the 10-year dollar bond carrying a coupon of 8.5%, the highest in its bond issuance history. As of early trading on Wednesday, that dollar bond’s yield remained largely at similar levels.
In addition, SoftBank also plans to raise funds in its domestic Japanese market, targeting retail investors with a ¥1 trillion (approximately $6.3 billion) retail bond offering scheduled for early next month, which would set a Japanese record. Separately, the company recently secured a $1 billion margin loan backed by its stake in OpenAI, which includes covenant clauses that may require SoftBank to post additional cash collateral or prepay the loan.
