SoftBank plans record $6.3 billion retail bond sale in Japan

SoftBank Group plans a record ¥1 trillion ($6.3 billion) retail bond sale in Japan, with 7-year bonds expected to be priced on Sept. 4 at an indicative coupon range of 4.3% to 4.9%, to fund its investment commitments to OpenAI. The offering, SoftBank's third retail bond sale this year after raising ¥418 billion in April and ¥260 billion in June, comes as the company has committed more than $60 billion to the ChatGPT developer and accelerates data center investments.

SoftBank Group plans a record ¥1 trillion $6.3 billion retail bond sale in Japan as the conglomerate raises funds for its investment commitments to OpenAI. The 7-year bonds are expected to be priced on Sept. 4, with an indicative coupon range of 4.3% to 4.9%, according to a company filing. The sale comes as the company has committed more than $60 billion to investments in the ChatGPT developer and has been raising funds to support those commitments. SoftBank has been accelerating investments in data centers as it seeks to expand computing capacity amid growing demand from OpenAI and other hyperscalers for AI tools and services. The offering will be SoftBank’s third retail bond sale this year, after it raised ¥418 billion in April and ¥260 billion in June. Earlier this month, SoftBank Group reported a surge in quarterly profit, posting net income of ¥1.83 trillion for the quarter ended March 31. The gain was driven by valuation gains on its OpenAI investment, as the Japanese company increased its bet on the ChatGPT maker. SoftBank has also considered a margin loan backed by its OpenAI stake, cutting its fundraising target to about $6 billion from $10 billion. The bond sale also comes after S&P Global Ratings revised its outlook on SoftBank to stable from negative on July 16, saying the company’s key financial ratios had improved more than previously expected. S&P affirmed SoftBank’s long-term issuer credit rating at BB+, one notch below investment grade.