SoftBank taps retail investors with US$1.6 billion yen bond deal
The company faces massive funding needs tied to AI infrastructure spending and other investments
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SOFTBANK plans to raise 260 billion yen (S$2 billion) through another sale of subordinated bonds aimed mainly at individual investors, about two months after a similar retail offering.
The bonds mature in 35 years with an issuer call option after five years, according to documents disclosed by the company on Monday. The pricing is scheduled for June 5, with the initial five-year coupon guided at 4.8 to 5.6 per cent.
SoftBank’s swift return to the retail bond market comes amid its growing funding needs for artificial intelligence-related investments.
The company downsized plans for a US$10 billion margin loan backed by its OpenAI stake, highlighting growing pressure on its financing position.
Large-scale bond issuance linked to AI infrastructure investment has been accelerating globally and the low-yielding yen has been among the preferred currencies.
Earlier this month, Alphabet, Google’s parent company, priced 576.5 billion yen of yen bonds, the biggest yen bond on record issued by a foreign company, according to data compiled by Bloomberg.
SoftBank also sold 418 billion yen in retail bonds in April, along with US$3.6 billion of dollar- and euro-denominated bonds for institutional investors.
SoftBank’s investment in OpenAI, the company behind ChatGPT, has exceeded US$60 billion. The Japanese conglomerate faces massive funding needs tied to AI infrastructure spending and other investments, while OpenAI is preparing for a potential initial public offering.
SoftBank’s credit risk, as measured by credit-default swaps, remains among the highest for Japanese companies, widening about 70 basis points in 2026.
In March, S&P Global Ratings revised SoftBank Group’s outlook to negative from stable, citing asset liquidity concerns following the company’s additional investment in OpenAI. BLOOMBERG
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