TLDR
- SoftBank is pursuing a bond offering exceeding $11 billion to support its financial commitment to OpenAI.
- The issuance consists of $10 billion in USD-denominated securities and €1 billion in euro-based bonds.
- Proceeds will partially cover a $10 billion OpenAI installment due October 1.
- The company intends to refinance its current $10 billion bridge financing facility with bond proceeds.
- The proposed securities received a BB+ rating from Fitch.
SoftBank is moving forward with a bond offering surpassing $11 billion as the Japanese technology conglomerate prepares for a substantial payment related to its OpenAI partnership.
The transaction involves $10 billion in senior unsecured notes denominated in U.S. dollars alongside €1 billion (approximately $1.15 billion) in euro-based securities.
The capital raised is intended to support a $10 billion installment associated with the third segment of SoftBank’s additional investment in OpenAI.
This payment is scheduled to finalize on October 1.
Bond Proceeds to Replace Bridge Financing
The U.S. dollar notes are structured across three tranches with maturities spanning 3.5 years, 5.5 years, and 7.5 years.
The euro-denominated securities are distributed between four-year and six-year maturity periods.
Pricing for the offering is anticipated on September 24, with settlement scheduled for September 29.
SoftBank had secured a $10 billion bridge financing arrangement earlier to cover its OpenAI obligations.
According to the term sheet, the newly raised bond capital will refinance that temporary facility.
Any surplus funds may be allocated toward general corporate needs.
Should the transaction close at its projected size, it would establish a new benchmark as the largest non-financial corporate bond sale ever recorded in the Asia-Pacific and Japan markets, based on LSEG data referenced by Reuters.
The offering would also secure a position among the top 20 largest corporate bond transactions worldwide in the current year.
Credit Rating Agency Assigns BB+ Grade
Fitch Ratings has designated the prospective notes with a BB+ rating.
The ratings firm noted that SoftBank’s leverage is projected to rise as the organization funds its committed capital allocations.
Nevertheless, Fitch indicated that SoftBank should maintain sufficient liquidity and ongoing access to financing channels.
Citigroup serves as the lead bookrunner for the U.S. dollar-denominated securities.
JPMorgan holds the lead bookrunner position for the euro component.
Citigroup, Goldman Sachs, JPMorgan, and Morgan Stanley are functioning as joint global coordinators for the dollar notes.
JPMorgan, Deutsche Bank, and Goldman Sachs are managing the euro portion.
AI Investment Remains Core to SoftBank Vision
OpenAI has emerged as a cornerstone of SoftBank CEO Masayoshi Son’s artificial intelligence investment thesis.
SoftBank has pledged tens of billions of dollars to the AI developer as it deepens its involvement in generative AI and supporting infrastructure.
The current financing underscores the substantial capital requirements necessary to sustain that strategic position.
OpenAI is simultaneously deploying significant resources toward computing power and infrastructure expansion as it scales its models and product offerings.
This dynamic has elevated the significance of major external backers like SoftBank.
The bond issuance also follows statements from OpenAI CEO Sam Altman indicating the company will not pursue a public offering in 2026.
Consequently, SoftBank’s stake remains in a privately held entity rather than approaching a near-term market debut.
SoftBank’s Vision Fund has already experienced valuation gains across several of its AI portfolio companies.
Currently, the firm is leveraging international debt markets to fund the upcoming phase of its OpenAI partnership, with the $10 billion installment due October 1.
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