SoftBank Group Corp. is preparing for a record ¥1 trillion ($6.3 billion) retail bond sale in Japan. This will be the largest retail bond offering ever by any issuer in Japan. The conglomerate is raising these funds specifically to support its substantial investment commitments to OpenAI, aligning with its ambitious artificial intelligence strategy.
The 7-year bonds are anticipated to be priced on September 4th, with an indicative coupon range of 4.3% to 4.9%. This offering follows earlier raises, including a ¥600 billion ($4.1 billion) retail bond and other dollar and euro deals aimed at international investors. The company has a history of issuing "Fukuoka SoftBank Hawks Bonds," named after its baseball team, which typically offer higher yields to attract retail investors.
SoftBank's cumulative investments and commitments to OpenAI are expected to exceed $60 billion, deployed in tranches. The company has already issued approximately $7.8 billion in bonds during 2026. This new bond issue is part of a broader fundraising effort that includes potentially multiple tranches across various currencies and investor types, with some analysts suggesting a target of up to $60 billion in fresh debt to cover its commitments.
Analysts note that retail investors are a key target for SoftBank due to their willingness to purchase products offering attractive yields, especially when traditional fixed-income options offer lower returns. While SoftBank's move is aimed at funding its AI push, it also highlights the increasing debt the company is accumulating. Ratings agencies have taken notice, with S&P moving its outlook to negative in March after a $30 billion OpenAI top-up, citing concentration in early-stage ventures, though it later revised its outlook to stable in July. Moody's maintains a Ba2 rating, placing SoftBank in speculative territory. Despite concerns, SoftBank remains committed to its AI thesis, viewing its investments as crucial for future growth.
