SoftBank Launches $11 Billion Bond Sale to Fund OpenAI Investment

SoftBank Group Corp. has launched a bond offering of more than $11 billion to refinance a bridge loan for its investment in OpenAI, according to a term sheet released on Monday. The Japanese technology investment group is issuing $10 billion in dollar-denominated notes and €1 billion in euro-denominated notes to fund a $10 billion payment for the third tranche of its follow-on investment in OpenAI, which is expected to close on October 1. The bond proceeds will cancel a previously secured $10 billion bridge loan facility for the OpenAI investment, effectively replacing shorter-term financing with longer-dated debt. The dollar-denominated notes are split into 3.5-year, 5.5-year, and 7.5-year tenors, while the euro-denominated bonds consist of 4-year and 6-year maturities. The issuances are expected to price on September 24 and settle on September 29, just two days before the planned OpenAI payment. Citigroup and JPMorgan are serving as lead bookrunners for the offering. The financing marks a significant step in SoftBank's aggressive push into artificial intelligence. The company's cumulative investment in OpenAI is nearly $65 billion, giving it about 13% ownership.