SoftBank Group is launching a major high-yield bond offering to raise over $11 billion. The deal includes $10 billion in dollar-denominated notes with maturities of 3.5 to 7.5 years and approximately €1 billion in euro-denominated notes. The dollar tranches carry yields between 9% and 10%, while the longest euro tranches are priced in the mid-8% range.
The company holds a BB+ credit rating from S&P and Fitch. Despite the high costs, investor interest has reached over $20 billion in preliminary demand. The transaction is expected to close in October 2026. This offering surpasses the company's previous record set in April 2026, when it raised $3.6 billion with an 8.5% coupon.
Proceeds from the bonds will refinance a portion of a $40 billion bridge facility used for investments in OpenAI. As of September 15, the firm had repaid $25.9 billion of this loan, with the remaining $10 billion capacity set to be canceled. The capital also supports SoftBank's total commitment of nearly $65 billion to OpenAI, representing a 13% stake.
The broader market for AI-related debt has exceeded $575 billion this year. While companies like Microsoft, Alphabet, and Apple utilize cash flow or lower-cost investment-grade debt, SoftBank is paying a significant risk premium. This strategy reflects a bet that future returns from OpenAI will exceed the high cost of capital.
