SoftBank Sells ¥90 Billion Bonds at Record-High Coupons

SoftBank, the Japanese conglomerate behind major investments in AI and tech, has sold ¥90 billion ($550 million) worth of bonds to institutional investors at record-high coupons. The sale consists of ¥80 billion of three-year notes and ¥10 billion of five-year notes, priced at 165 basis points above Japanese government bonds for the three-year tranche and 190 basis points over for the five-year tranche.

The bonds have coupons of 3.270% for the three-year notes and 3.886% for the five-year notes, marking the highest paid in a sale to institutional investors by any domestic corporate borrower for these maturities.

SoftBank has been expanding its funding base as it ramps up fundraising efforts, driven by strong investor demand drawn to surging domestic interest rates.

The company's founder and CEO Masayoshi Son has pledged to invest heavily in OpenAI, with commitments exceeding $60 billion. SoftBank's growing financing needs are being met through a combination of bank loans, subordinated bonds for retail investors, and US dollar- and euro-denominated bond offerings in overseas markets.