SoftBank Group Corp. is in discussions with investment banks to issue $10 billion to $20 billion in bonds, potentially denominated in dollars and euros, as early as September. This move aims to refinance a bridge loan that SoftBank used to fund its significant investment in OpenAI. The talks are ongoing, and the details of the offering could still change.
SoftBank is actively seeking to refinance a $40 billion bridge loan that matures in March 2027, which it secured to finance its commitment to OpenAI. The company has already committed an estimated $64.6 billion to OpenAI. As part of this refinancing effort, SoftBank received an upsized $11.87 billion two-year loan last week, exceeding its initial $10 billion target, with commitments from around 20 banks.
To gauge investor interest for a potential junk bond sale, SoftBank has scheduled meetings with investors in New York from September 14 to September 17. These meetings, held at Citigroup's offices, are being led by CFO Yoshimitsu Goto and other executives, with representatives from Citigroup, Goldman Sachs, JPMorgan Chase, and Morgan Stanley also present. The bond sale, which could include both US dollar and euro tranches, aims to raise between $10 billion and $20 billion and would be one of the largest high-yield offerings in recent memory. SoftBank holds a BB+ credit rating from S&P, placing it in junk-bond territory.
SoftBank's previous bond sale in April 2026, a $3.6 billion multi-currency offering, included a portion with an 8.5% coupon rate. This previous issuance will serve as a benchmark for investors as SoftBank seeks new financing. The large scale of the proposed bond offering is expected to draw significant attention from portfolio managers due to its potential impact on supply-demand dynamics in the high-yield market.
