SoftBank seeks over $11 billion in junk bonds to fund OpenAI investment
SoftBank Group is seeking to issue over $11 billion in junk bonds, one of the largest high-yield deals on record, to fund a follow-on investment in OpenAI expected to close next month. The offering includes $10 billion in USD bonds and €1 billion in EUR bonds. SoftBank has committed nearly $65 billion to OpenAI, and its debt default insurance costs have hit a three-year high amid rising borrowing costs and AI safety concerns.
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SoftBank Seeks Over $11 Billion in Junk Bonds to Fund OpenAI Investment
SoftBank Group is planning to issue over $11 billion in junk bonds, which would be one of the largest such transactions on record, according to sources. The offering includes $10 billion in USD-denominated bonds across three tranches and €1 billion in euro-denominated bonds across two tranches. Part of the proceeds will fund a follow-up investment in OpenAI, expected to close next month. This debt issuance follows a $40 billion bridge loan signed in March to invest in OpenAI, which has since been partially repaid. SoftBank has also recently increased a margin loan backed by Arm stock to $25 billion and is in talks with Apollo Global Management to raise a loan to $9 billion. The company has issued nearly $15 billion in various bonds this year, making it the largest junk-grade borrower in 2026. The financing comes amid rising borrowing costs and growing AI safety concerns, which have increased the cost of insuring SoftBank's debt to a three-year high. Standard & Poor's rates SoftBank BB+, its highest speculative grade.
Read sourceSoftBank Seeks Over $11 Billion in Junk Bonds to Fund Additional OpenAI Investment
SoftBank Group is seeking to issue over $11 billion in junk bonds, which would be one of the largest high-yield bond transactions in history, according to sources familiar with the matter. The Japanese conglomerate plans to issue $10 billion in dollar-denominated bonds across three tranches and €1 billion (approximately $1.1 billion) in euro-denominated bonds across two tranches. Proceeds from the sale will be used in part to fund a follow-up investment in OpenAI, expected to close next month. SoftBank has already committed nearly $65 billion to OpenAI, making its future performance increasingly dependent on the commercial returns from this investment. S&P rates SoftBank at BB+, its highest speculative-grade rating, contrasting with higher ratings for major corporate bond issuers like Alphabet and Amazon.
Read sourceSoftBank Seeks to Issue Over $11 Billion in Junk Bonds to Fund OpenAI Investment
SoftBank Group is seeking to issue over $11 billion in junk bonds, which would be one of the largest high-yield bond deals in history, according to people familiar with the matter. The Japanese conglomerate plans to issue $10 billion in dollar-denominated bonds across three tranches and €1 billion (approximately $1.1 billion) in euro-denominated bonds across two tranches. Proceeds from the sale will be used in part to fund a follow-up investment in OpenAI, expected to close next month. SoftBank has already committed nearly $65 billion to OpenAI, making its future performance increasingly dependent on the commercial returns of that investment. S&P rates SoftBank at BB+, its highest speculative-grade rating, while major corporate bond issuers like Alphabet and Amazon hold AA+ and AA ratings, respectively, both above Japan's sovereign credit rating.
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SoftBank Plans Over $11 Billion Junk Bond Sale to Fund OpenAI Investment
SoftBank Group is seeking to issue over $11 billion in bonds, which would be one of the largest junk bond transactions ever, according to a report from Jin10 on September 21. Citing sources on Monday, the report states that Masayoshi Son's conglomerate is increasing its investment in OpenAI. The plan includes $10 billion in three-tranche dollar-denominated bonds and €1 billion (approximately $1.1 billion) in two-tranche euro-denominated bonds. The funds will partly finance a follow-on investment in OpenAI expected to close next month.
Read sourceSoftBank seeks over $11 billion in junk bonds to fund OpenAI investment
SoftBank Group is seeking to issue over $11 billion in junk bonds, which would be one of the largest such deals in history, to fund its investment in OpenAI, the developer of ChatGPT. According to sources, the plan includes $10 billion in USD bonds across three tranches and €1 billion in EUR bonds across two tranches. Part of the proceeds will finance an additional investment in OpenAI expected to close next month, with pricing possible on Thursday. SoftBank, one of the world's largest AI investors, has committed nearly $65 billion to OpenAI, tying its fate to monetizing its stake. The company recently repaid a $2.59 billion balance on a $40 billion bridge loan for OpenAI and has added nearly $21 billion in potential borrowing through margin loans and credit lines. Apollo Global Management is also in talks to increase a loan to SoftBank by $3.6 billion. The bond sale comes amid rising borrowing costs and growing safety concerns about AI, which have pushed SoftBank's debt default insurance costs to a three-year high. OpenAI CEO Sam Altman said the company will not go public this year, a move that would increase liquidity for SoftBank's investment. SoftBank is rated BB+ by S&P, its highest speculative-grade rating.
Read sourceSoftBank Plans Over $11 Billion Junk Bond Sale to Fund OpenAI Investment
According to sources cited by Zhitong Finance, SoftBank Group is seeking to issue over $11 billion in junk bonds, potentially one of the largest such transactions in history. The issuance includes $10 billion in USD-denominated bonds across three tranches and €1 billion (about $1.1 billion) in euro-denominated bonds across two tranches. Part of the proceeds will fund a follow-up investment in OpenAI, expected to close next month. SoftBank has already committed nearly $65 billion to the AI company. The bond sale is expected to price on Thursday. This comes amid a series of debt financing moves by SoftBank, including a $40 billion bridge loan, a $25 billion margin loan backed by Arm shares, and a $10 billion loan secured by its OpenAI stake. The company's borrowing costs have risen, with yields on its 2031 dollar bonds climbing to 8.2% in early April from a January low of 6.7%. Credit default swap costs have also hit a three-year high amid AI safety concerns. Standard & Poor's rates SoftBank BB+, its highest speculative grade.
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