SoftBank Group is preparing for its largest-ever retail bond issuance, aiming to raise approximately 1 trillion yen ($6.26 billion) from individual investors in Japan. This move is intended to finance the company's aggressive expansion into artificial intelligence-related projects, including potential acquisitions like the industrial robotics business of ABB Ltd., and to refinance existing corporate debt.
This will be SoftBank's third retail bond offering in 2026, following issuances in April and June. The bonds are expected to have a maturity of seven years, with the specific coupon rate and other terms to be finalized in early September. The previous record for a retail bond issuance by a Japanese company was $600 billion, also set by SoftBank Group in 2025.
The increasing demand for funds is driven by SoftBank's intensified focus on AI investments, particularly in "physical AI" which controls robots. Funds may also be used to repay bridge loans for additional contributions to OpenAI. The company reportedly plans to invest a total of $10 trillion by October, partially financed through short-term borrowing. This record-breaking issuance coincides with a global trend of major tech companies increasing corporate bond issuances amid a competitive landscape for AI investment and growing demand for bond investments among individual Japanese investors seeking higher returns due to inflation.
