Key takeaways
- SoftBank raises $11.1 billion through dollar- and euro-denominated bonds.
- The funds support SoftBank’s massive investment in OpenAI and AI infrastructure.
- Rising debt-insurance costs increase scrutiny of SoftBank’s financial exposure.
SoftBank Group raised $11.1 billion through dollar- and euro-denominated bonds Thursday in Tokyo to help finance its large SoftBank investment in OpenAI, adding debt as it expands its AI strategy.
Bond sale expands SoftBank’s financing
The sale includes $1 billion of 3.5-year dollar notes, $4.5 billion of 5.5-year notes and $4.5 billion of 7.5-year notes, according to a filing. The securities carry interest rates of 8.625%, 9.25% and 9.75%, respectively.
SoftBank also issued two €500 million tranches with four- and six-year terms. They carry yields of 7.125% and 8%, according to the filing. Reuters reported the transaction is set to be the largest high-yield bond sale on record by an Asia-Pacific issuer.
The sale follows a 1 trillion yen, or about $6.3 billion, bond issue aimed at retail investors earlier this month. Together, the transactions expand SoftBank’s access to debt markets as it continues to finance investments tied to artificial intelligence.
OpenAI bet drives capital needs
SoftBank’s latest financing comes as founder and CEO Masayoshi Son increases the group’s exposure to artificial intelligence. Reuters reported that SoftBank has committed $64.6 billion to OpenAI, in addition to billions of dollars for related AI infrastructure projects.
The company has also used bridge financing to support its SoftBank investment in OpenAI. SoftBank said its bridge facility totaled $40 billion and that $30 billion had been drawn before it repaid the $25.9 billion outstanding balance on Sept. 15.
In its 2026 annual report, Chief Financial Officer Yoshimitsu Goto said SoftBank plans to use a mix of financing methods for large investments. “LTV is something we can directly control,” Goto said, referring to the company’s loan-to-value ratio.
SoftBank’s annual report says its remaining $10 billion commitment in a $30 billion follow-on investment in OpenAI is scheduled to be paid in October, although the closing date could change if OpenAI goes public sooner.
Debt risk draws closer attention
The new bond sale comes as the cost of insuring SoftBank’s debt against default has risen. Reuters reported that the company’s five-year credit default swap spread, a measure of debt-insurance costs, exceeded 400 basis points this week, compared with about 280 basis points in June and about 200 basis points in October 2025.
SoftBank says it aims to keep its loan-to-value ratio below 25% in normal conditions and below 35% in extraordinary circumstances. At the end of June, the ratio stood at 13%, according to Reuters.
The company has said maintaining financial discipline remains central to its investment approach. In SoftBank’s 2026 annual report, external board director Kenneth A. Siegel said that “subject to a credible path for maintaining appropriate financial discipline,” the board viewed the SoftBank investment in OpenAI as an allocation of company resources intended to drive net asset value growth.
SoftBank shares rose more than 6% in morning trading Thursday after Tokyo markets reopened following national holidays from Monday through Wednesday, according to Reuters.
