SoftBank Group has initiated a bond offering totaling $11 billion to refinance short-term debt related to its investment in OpenAI. The issuance consists of $10 billion in dollar-denominated bonds and €1 billion in euro-denominated notes. The offering is structured into five tranches with maturities ranging from 3.5 to 7.5 years for dollar bonds and 4 to 6 years for euro bonds. Final pricing is expected on September 24, with settlement scheduled for September 29.
The company previously committed to a $30 billion investment in OpenAI, with payments structured in three equal installments due on April 1, July 1, and October 1. SoftBank has already invested a total of $64.6 billion in OpenAI, securing approximately a 13% stake. The current bond issuance serves to replace existing short-term financing rather than increasing the total financial commitment to the AI developer.
SoftBank continues to manage significant financial obligations. On September 9, the group reported the early repayment of $25.9 billion from a $40 billion credit line. To support its investment activities, the firm previously sold its entire stake in Nvidia for $5.8 billion and T-Mobile shares for $9.2 billion. Additionally, the company utilized Arm shares as collateral for a $25 billion margin loan.
The cost of borrowing remains a critical factor for the group. In April, SoftBank issued dollar bonds with yields of 7.625% and 8.25%. By September, the yield on its dollar bonds maturing in 2031 reached approximately 8.2%. These financial maneuvers occur as OpenAI engages in discussions regarding a new private funding round at a higher valuation than its previous pre-money valuation of $730 billion.
