Key facts
- SoftBank Group issued $11.1 billion in dollar- and euro-denominated bonds.
- The bond issuance aims to fund SoftBank's $10 billion investment in OpenAI.
- The dollar-denominated notes have maturities of 3.5, 5.5, and 7.5 years.
- The euro-denominated notes have maturities of 4 and 6 years.
- The bonds will help refinance a previously secured $10 billion bridge loan.
SoftBank Group has launched a significant debt offering, issuing $11.1 billion in dollar- and euro-denominated bonds to secure funding for its substantial investments in artificial intelligence, particularly its commitment to OpenAI. The bond sale, which includes multiple tranches with varying maturities, is designed to refinance a previously secured bridge loan and support the third tranche of SoftBank's investment in the ChatGPT-maker.
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. This issuance marks one of the largest high-yield bond offerings by a non-financial company from the Asia Pacific region. The proceeds are earmarked for SoftBank's $10 billion payment for the third tranche of its follow-on investment in OpenAI, which will bring its total investment to $64.6 billion.