SoftBank Launches More Than $10 Billion in Bonds for OpenAI Investment

SoftBank Group launched $10 billion and €1 billion of senior unsecured notes to fund its investment in OpenAI, according to a term sheet reported Monday. [1] The dollar notes are divided among 3½-year, 5½-year and 7½-year tenors. [1] The proceeds will fund SoftBank’s $10 billion payment for the third tranche of its follow-on OpenAI investment and general corporate purposes. [2]

The issuances are expected to price on September 24 and settle on September 29. [2] Bloomberg characterized the plan as an effort to raise more than $11 billion through one of the largest junk-bond offerings. [3]

SoftBank is using debt markets to finance a defined tranche of its follow-on OpenAI investment while retaining some proceeds for general corporate purposes. Dividing the dollar notes among three maturities spreads the borrowing across different repayment horizons. Reuters describes the instruments as senior unsecured notes, while Bloomberg emphasizes their junk-bond classification and the offering’s size.

The expected pricing and settlement dates provide the next checkpoints for whether the transaction proceeds as planned. What the sources don't address: what borrowing costs SoftBank will accept or how demand will vary across currencies and maturities.