Shares of SoftBank Group Corp. declined 2.9% to ¥5,105 in Tokyo on Monday, extending losses after the company announced plans to issue approximately ¥1 trillion in retail bonds.
The offering, slated to be the largest retail bond sale ever by a Japanese firm, has raised concerns over the company’s already elevated debt levels and overall leverage. Investors are scrutinizing the capital raise amid skepticism about the pace of returns from SoftBank’s aggressive investments in artificial intelligence infrastructure.
The bond issuance follows weeks of pressure on global technology stocks, driven in part by rising government bond yields. While the broader Tokyo market showed little movement, with the Nikkei 225 index largely flat, SoftBank’s stock underperformed as doubts persist over whether AI-related expenditures will deliver expected returns in the near term.
SoftBank has framed the capital raise as part of its long-term strategy to fund further expansion in AI and other high-growth sectors. However, the timing of the announcement has intensified market concerns about valuation risks tied to the company’s heavy investment commitments.
