SoftBank has initiated a bond offering totaling more than $11 billion to finance its upcoming investment in OpenAI. The deal includes $10 billion in dollar-denominated senior unsecured notes and €1 billion in euro-denominated notes, which is approximately $1.15 billion. The proceeds will cover a $10 billion payment for an OpenAI investment tranche scheduled to close on October 1.
The dollar notes feature maturities of 3.5, 5.5, and 7.5 years, while the euro notes are set for 4 and 6 years. Pricing is expected on September 24, with settlement on September 29. This transaction is set to replace a $10 billion bridge facility. According to LSEG data, this would be the largest non-financial corporate bond offering from the Asia-Pacific and Japan region, surpassing a 2021 deal by 7-Eleven.
This move follows a $11.87 billion two-year loan secured from approximately 20 banks just one week prior. In February, SoftBank committed to a total investment of $30 billion in OpenAI, split into three installments. Upon completion, the company's cumulative investment in OpenAI will reach $64.6 billion, representing a 13% ownership stake. Fitch Ratings has assigned the proposed notes a BB+ rating.
Citigroup is managing the dollar bond offering, while JPMorgan is leading the euro transaction. Other participating banks include Goldman Sachs, Morgan Stanley, and Deutsche Bank. SoftBank CFO Yoshimitsu Goto previously indicated plans to refinance short-term bridge debt with longer-term instruments. As of March 31, the company reported a loan-to-value ratio of 17%, maintaining its policy of keeping this figure below 25%.
