SoftBank weighs major bond deals tied to OpenAI

SoftBank Group is in talks with investment banks about issuing between $10 billion and $20 billion of bonds to help refinance financing related to its investment in US technology firm OpenAI. The prospective transaction is being considered as part of a broader plan to manage a $40 billion bridge loan that was secured earlier this year to support that investment.

The potential bond sale could be denominated in both US dollars and euros and may take place as early as September. A SoftBank spokesperson has said the company is considering various options to refinance the bridge facility and that no final decision has been made on the size of any offering.

Proceeds from the contemplated issuance would be used in part to repay the existing $40 billion bridge loan. The move would allow SoftBank to replace short-term financing tied to OpenAI with longer-term debt raised in international capital markets.

SoftBank is exploring issuing the prospective offshore bonds under Rule 144A, which would allow the notes to be sold to US institutional investors. It would be the company’s first offshore offering using a 144A structure in more than a decade, marking a notable return to that segment of the market.

If the deal reaches the upper end of the $20 billion range, it would be the largest offshore bond transaction by any Asian issuer so far this year. The size under consideration underscores SoftBank’s reliance on international capital markets to support large-scale technology investments.

In a separate initiative, SoftBank has filed plans for a proposed ¥1 trillion seven-year bond aimed mainly at Japanese individual investors. The planned retail-focused issue is one of the largest of its kind in Japan’s corporate bond market.

Indicative coupon guidance for the proposed ¥1 trillion bond is around 4.3% to 4.9%, with an expected issuance window in mid-September. Targeting domestic individual investors complements SoftBank’s offshore efforts and broadens its funding base beyond institutional buyers.

Taken together, the potential offshore bond linked to OpenAI financing and the large retail bond in Japan highlight SoftBank’s multi-pronged approach to refinancing and diversifying its sources of debt capital.