SoftBank is considering a bond sale of up to $20 billion to refinance borrowing tied to its expanding investment in OpenAI.
Key Points:
- SoftBank is discussing a $10 billion to $20 billion bond offering that could arrive as early as September.
- The proceeds would partly refinance a $40 billion bridge loan used for its OpenAI investment.
- At $20 billion, the deal would be the largest bond sale by an Asian company this year, according to Bloomberg.
SoftBank Bond Plan
SoftBank is discussing a potential $10 billion to $20 billion bond offering with investment banks, according to people familiar with the matter. The sale could include dollar- and euro-denominated debt and may come as early as September, although talks remain ongoing and terms could change.
Part of the proceeds would repay a $40 billion bridge loan arranged earlier this year to finance SoftBank’s OpenAI investment.
The Japanese conglomerate, led by Masayoshi Son, is expected to invest close to $65 billion in OpenAI by October, with loans covering part of that commitment.
SoftBank is also considering a Rule 144A structure, which could open the offering to U.S. institutional investors for the first time in more than a decade. A $20 billion deal would be the largest bond sale by an Asian company this year, according to Bloomberg data.
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Trey Parker Warning
The possible offering comes as companies raise increasingly large sums for artificial intelligence projects. Bloomberg data show companies have borrowed more than $410 billion in bond markets this year for data centers and other AI investments, increasing scrutiny of leverage and repayment risk.
Trey Parker, chief investment officer and co-founder of Sycamore Tree Capital Partners, warned this week that the AI buildout carries significant credit risks.
He said strong insurance demand for private credit can expose investors to “rating-designation risk” if ratings are later revised or challenged by regulators.
SoftBank said no financing plan has been finalized. “We are considering various options to refinance the bridge loan, but nothing has been decided, including the amount for each,” a spokesperson said.
The company has already used several funding channels for its AI push. SoftBank sold $3.6 billion of offshore bonds in April, plans a ¥1 trillion ($6.3 billion) Japanese retail bond sale for early September and recently secured a $10 billion margin loan backed by its OpenAI stake.
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