SoftBank Group recently completed a $11.1 billion high-yield corporate bond sale, the largest transaction of its kind globally. The issuance included $10 billion in dollar-denominated notes and €1 billion in euro notes. Despite yields reaching 9.75% and speculative credit ratings, investor demand exceeded $30 billion.
The capital raised is primarily designated for refinancing existing obligations and finalizing the company's investment in OpenAI. SoftBank has committed approximately $64.6 billion to the AI firm, with the final tranche expected to close around October 1, 2026. Upon completion, SoftBank anticipates holding a 13% stake in the developer of ChatGPT.
The company reported net debt of ¥10.8 trillion as of June 2026, while maintaining a self-imposed loan-to-value ratio below 25%. Five-year CDS spreads on SoftBank debt have risen above 400 basis points. CFO Yoshimitsu Goto stated that the group prefers borrowing against existing holdings to fund new technology investments rather than selling assets.
Under founder Masayoshi Son, SoftBank continues to focus on AI across models, chips, and robotics. While share prices remain volatile, they are approximately one-third higher than a year ago. Investors are now monitoring the company's debt metrics, including CDS spreads and the loan-to-value ratio, alongside the valuation trajectory of its private AI holdings.
