SoftBank Issues $11 Billion Bond Sale to Fund OpenAI Investment

SoftBank is launching an $11 billion bond sale to finance its investment in OpenAI. The offering includes $10 billion in dollar-denominated notes and €1 billion in euro-denominated bonds. The proceeds will be used to fund a $10 billion payment connected to the third tranche of SoftBank's follow-on investment in OpenAI, which is expected on October 1.

The new bond proceeds will replace an existing $10 billion bridge loan, arranged by SoftBank to finance its OpenAI commitment. The deal would become the largest non-financial corporate bond offering in the Asia-Pacific and Japan region on record if completed at the planned size.

Fitch Ratings assigned the proposed notes a BB+ rating, citing SoftBank's increased debt as it finances committed investments. However, Fitch noted that SoftBank should retain adequate liquidity and continued access to capital markets.