SoftBank Group is preparing a record ¥1 trillion ($6.3 billion) retail bond offering in Japan as it ramps up funding for artificial intelligence investments, including its growing financial commitments to OpenAI. The seven-year bonds would represent the largest retail corporate bond issue by a Japanese company.
The planned sale comes as SoftBank faces major funding needs across its AI portfolio. The company has committed $30 billion in additional investment in OpenAI, with $20 billion already funded in April and July and another $10 billion scheduled for October. SoftBank also arranged a $40 billion bridge facility in March to support the OpenAI investment and other corporate needs.
Funding the AI push
The new bonds are expected to carry an indicative coupon of 4.3% to 4.9%. Pricing is scheduled for September 4, followed by an offering period from September 7 through September 16. The bonds are expected to be issued on September 17 and mature in September 2033.
SoftBank has said it plans to refinance its bridge financing through a mix of asset-backed financing, asset sales and debt issuance. Its latest annual report also identifies AI investments and major acquisitions as key funding priorities.
The company is simultaneously expanding its AI infrastructure strategy. SoftBank is involved in large-scale data center projects in the United States and Europe, while also pursuing acquisitions such as ABB’s robotics business.
Higher funding costs raise scrutiny
The record retail issuance highlights the scale of SoftBank’s AI ambitions, but it also increases attention on borrowing costs and balance-sheet risk. The proposed coupon sits well above the 3.98% yield on SoftBank’s seven-year retail bonds issued last year.
SoftBank’s strategy increasingly depends on converting the value of holdings such as Arm and its OpenAI stake into financing capacity. The company says it will prioritize maintaining financial discipline while supporting large-scale investments.
The bond sale therefore gives SoftBank another major funding source as it seeks to capitalize on the rapid expansion of AI infrastructure and OpenAI’s growth.
