SoftBank Group is in advanced discussions with banks regarding a potential bond offering of up to $20 billion to refinance a $40 billion bridge loan linked to its investment in OpenAI. The proposed issuance, which could be the company's largest offshore bond sale to date, would be structured in dollar and euro denominations and may include a 144A tranche to attract U.S. institutional investors.
The timing of the offering remains flexible, with a potential launch as early as September, though no final decision has been made, according to a company spokesperson. The refinancing would support SoftBank's planned $65 billion investment in OpenAI, with the majority of funds scheduled to be deployed by October.
In April, SoftBank raised $3.6 billion through dollar- and euro-denominated bonds, including a 10-year dollar tranche with an 8.5% coupon. The conglomerate's shares in Tokyo were up 2.8% at 5,228 yen in early trading on Wednesday, following a 1.49% gain the previous session.
The potential bond offering underscores SoftBank's efforts to manage its substantial financing commitments amid its strategic push into artificial intelligence and technology investments.
