Key facts
- SoftBank Group plans to raise $11.1 billion through dollar- and euro-denominated corporate bonds.
- The bond sale is the largest high-yield corporate bond sale on record.
- Proceeds will fund SoftBank's $10 billion investment in OpenAI.
- The issuance will also refinance a previously secured $10 billion bridge loan.
SoftBank Group is planning to raise a record $11.1 billion through the sale of dollar- and euro-denominated corporate bonds with yields of up to 9.75%. The issuance aims to fund the Japanese investment company's $10 billion investment in OpenAI and refinance a previously secured $10 billion bridge loan. The bond sale is the largest high-yield corporate bond sale on record.
The dollar-denominated senior notes total $10 billion, with tranches of $1 billion at 3.5 years, $4.5 billion at 5.5 years, and $4.5 billion at 7.5 years, carrying interest rates of 8.625%, 9.25%, and 9.75% respectively. Additionally, SoftBank issued two €500 million tranches of euro-denominated senior notes with four- and six-year terms, yielding 7.125% and 8% respectively. Once the third tranche is complete, SoftBank's total investment in OpenAI is expected to reach approximately $64.6 billion.