SoftBank Raises $11B for OpenAI Investment Through Bond Markets
SoftBank is set to raise over $11 billion through its bond markets to secure funding for its investment in OpenAI. The Japanese conglomerate plans to use the proceeds from the bond offering to cover a $10 billion installment due on October 1, as well as refinance its current bridge financing facility of the same amount.
The bond offering consists of $10 billion in USD-denominated securities and €1 billion (approximately $1.15 billion) in euro-based bonds. The proposed notes will have maturities ranging from 3.5 years to 7.5 years, with Fitch Ratings assigning a BB+ rating.
The bond issuance is significant, as it would establish a new benchmark for the largest non-financial corporate bond sale ever recorded in the Asia-Pacific and Japan markets, according to LSEG data referenced by Reuters.