SoftBank Launches $11 Billion Bond Sale to Fund OpenAI Investment
SoftBank Group Corp has launched $10 billion in dollar-denominated senior unsecured notes and €1 billion in euro-denominated notes to help fund its investment in OpenAI, according to a term sheet seen on Monday.
The dollar-denominated notes are divided into three maturities of 3.5 years, 5.5 years, and 7.5 years. The euro-denominated notes, meanwhile, are being offered with four-year and six-year maturities, according to the term sheet.
SoftBank plans to use the proceeds primarily to fund its $10 billion payment for the third tranche of its follow-on investment in OpenAI. The investment is expected to close on October 1. A portion of the proceeds will also be allocated for general corporate purposes.
The latest bond issuance will replace a $10 billion bridge loan facility that SoftBank had previously secured to finance its investment in OpenAI, the term sheet said.
The notes are expected to be priced on September 24 and settle on September 29. Citigroup and JPMorgan are serving as the lead bookrunners for the bond offerings.
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SoftBank’s latest fundraising comes as the Japanese technology investment group continues to expand its financial commitment to OpenAI. The company has been increasing its exposure to artificial intelligence as the technology becomes a central focus of its investment strategy.
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The planned bond sale also highlights the scale of capital required to support SoftBank’s continued investment in OpenAI.
By raising funds through multiple debt maturities and currencies, the company is seeking to finance the investment while maintaining flexibility in its broader corporate funding requirements.
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The bond offering is expected to provide SoftBank with the funds needed ahead of the scheduled October 1 payment, while simultaneously replacing the bridge financing arranged earlier for the OpenAI investment.