Key Takeaways
- Tech investor SoftBank Group issued $11.1 billion in bonds to fund its investment in OpenAI.
- The bond sale is the largest high-yield bond issue by an Asia-Pacific issuer on record.
- SoftBank has committed $64.6 billion to OpenAI and related AI infrastructure projects.
Tech investor SoftBank Group has issued $11.1 billion in dollar- and euro-denominated bonds, aiming to fund its significant investment in OpenAI. This move comes as the company seeks to bolster its position in the rapidly growing artificial intelligence sector.
The bond sale, which includes dollar-denominated senior notes of $1 billion at a 3-1/2-year term, $4.5 billion at 5-1/2 years, and $4.5 billion at 7-1/2 years, as well as two €500 million tranches of euro-denominated senior notes with terms of four and six years, is set to be the largest high-yield bond issue by an Asia-Pacific issuer on record.
SoftBank has already committed $64.6 billion to OpenAI and billions more in related AI infrastructure projects, part of founder Masayoshi Son’s vision to make the Japanese conglomerate a dominant investor in the sector. The company aims to keep the ratio of loans to the total value of its assets under 25% in normal conditions, rising to 35% in extraordinary circumstances.
The cost of insuring SoftBank’s debt against default has increased significantly since June, with the five-year credit default swap spread exceeding 400 basis points this week, up from around 280 basis points in June and 200 basis points in October 2025.
Despite the rise in debt costs, SoftBank’s share price rose more than 6% in morning trading on Thursday after Tokyo markets were closed from Monday to Wednesday this week for national holidays.
The bond issuance is part of SoftBank’s broader strategy to finance its significant investments in AI, which include OpenAI and other related projects. The company’s commitment to the sector underscores its belief in the long-term potential of AI technology.
SoftBank’s move to issue these bonds highlights the growing importance of AI in the global tech landscape and the financial commitment required to support such investments. The company’s ability to secure such a large bond issue reflects its standing in the market and the confidence of investors in its strategy.
