Key facts
- SoftBank Corp. gained more retail shareholders than any other Japanese company in the last fiscal year.
- Nearly half of SoftBank Corp.'s individual shareholders are under 50.
- SoftBank Group is raising ¥500 billion ($3.2 billion) via a seven-year bond for retail investors with a 3.98% coupon.
- The company plans another 260 billion yen subordinated bond sale for individual investors.
- SoftBank's investment in OpenAI has surpassed $60 billion, contributing to its funding needs.
SoftBank Corp. has emerged as the leader in attracting retail investors among Japanese companies, implementing strategies such as stock splits and enhanced communication to appeal to younger demographics. As of March, nearly half of its individual shareholders were under 50.
In parallel, SoftBank Group Corp. is actively tapping into the retail bond market to finance its significant investments, particularly in artificial intelligence. The company is raising ¥500 billion ($3.2 billion) through a seven-year unsecured bond offering, branded as the “Fukuoka SoftBank HAWKS Bond,” with a coupon rate of 3.98%, the highest for a senior yen-denominated note in over 15 years. These proceeds will be used to repay existing debt, including a bridge loan related to its expanded stake in OpenAI.
This latest bond issuance is set to push SoftBank Group's cumulative retail bond sales past ¥9.9 trillion, solidifying its dominant position, accounting for approximately 42% of Japan's outstanding retail bond market. The company is also planning another 260 billion yen subordinated bond sale for individual investors, with maturities of 35 years and a five-year call option. These moves underscore SoftBank's reliance on individual investors to fund its substantial AI-focused strategy, which includes over $60 billion invested in OpenAI.
Despite robust demand, SoftBank's credit risk has widened, and S&P Global Ratings revised SoftBank Group’s outlook to negative from stable, citing liquidity concerns following its increased investment in OpenAI.