SoftBank Group has completed one of the largest junk bond offerings ever, raising approximately $11.1 billion to fund its significant investments in OpenAI. This issuance, comprising $10 billion in dollar-denominated notes and €1 billion ($1.14 billion) in euro-denominated notes, positions SoftBank as the biggest corporate junk bond borrower globally. The proceeds from this bond sale are primarily earmarked for a $10 billion payment, representing the final installment of its $30 billion follow-on investment in OpenAI, which is expected to finalize on October 1.
The bond offering saw considerable investor interest, with early demand for the dollar portion exceeding $30 billion. Despite this, SoftBank incurred record-high yields for its debt. The dollar-denominated bonds were issued in three tranches: $1 billion at 8.625% for 3.5 years, $4.5 billion at 9.25% for 5.5 years, and $4.5 billion at 9.75% for 7.5 years. The euro-denominated notes, totaling €1 billion, were issued in two parts with maturities of four and six years, with the longer-dated tranche pricing at a record 8% yield for that tenor. These yields represent the highest SoftBank has paid for dollar bonds, occurring on a day when U.S. Treasury rates reached two-decade highs.
The successful bond issuance caused SoftBank's shares to jump over 7% as Japanese markets reopened. This fundraising effort underscores CEO Masayoshi Son's aggressive push into artificial intelligence. With this latest investment, SoftBank's total cumulative investment in OpenAI will reach $64.6 billion, granting it an approximate 13% stake upon completion. The deal serves as a significant test for investor sentiment regarding AI financing, with some analysts expressing unease about the burgeoning debt in the AI sector, as global AI-related debt issuance has already surpassed $575 billion in 2026.
