SoftBank Group is in advanced discussions with banks to launch a bond sale of up to $20 billion to refinance a $40 billion bridge loan secured for its investment in OpenAI.
The potential offering, which could be SoftBank’s largest offshore bond issuance to date, may be denominated in U.S. dollars and euros and include a 144A tranche to attract U.S. institutional investors. Timing remains uncertain, with a possible launch as early as September, though final size, structure, and execution are not yet finalized.
Proceeds from the bond sale would be used to repay the bridge loan, which was arranged earlier this year to fund SoftBank’s growing exposure to OpenAI. The conglomerate plans to invest nearly $65 billion in OpenAI by October, with a portion of the funding expected to come from borrowings. SoftBank confirmed to Bloomberg that it is evaluating refinancing options but stated that no decisions have been made.
SoftBank previously issued $3.6 billion in dollar- and euro-denominated bonds in April, including a 10-year dollar tranche with an 8.5% coupon. The Tokyo-listed shares of SoftBank were up 2.8% at 5,228 yen in early trading, following a prior close of 5,087 yen on August 25.
