SoftBank Launches $11 Billion Bond Sale to Fund OpenAI Investment

SoftBank Group Corp. has launched a major bond offering worth $10 billion and €1 billion to finance its latest investment in OpenAI, according to a term sheet released Monday.

The Japanese technology investment group is issuing senior unsecured notes across several maturities as it prepares to make a $10 billion payment tied to the third tranche of its follow-on OpenAI investment. That payment is expected to close on October 1.

SoftBank’s dollar-denominated bond offering is divided into notes with maturities of 3.5 years, 5.5 years and 7.5 years. Its euro-denominated issuance, meanwhile, consists of 4-year and 6-year bonds.

The proceeds will primarily finance SoftBank’s OpenAI investment, while some of the funds may also be used for general corporate purposes, according to the term sheet.

SoftBank had previously arranged a $10 billion bridge loan facility to provide funding for the OpenAI transaction. The new bond issuance is expected to replace that temporary financing, effectively refinancing the bridge loan with longer-term debt.

The bonds are scheduled to be priced on September 24, with settlement expected on September 29, just two days before SoftBank’s planned OpenAI payment.

Citigroup and JPMorgan are serving as lead bookrunners for the bond offering, the term sheet showed.

SoftBank could not immediately be reached for comment Monday because Japanese markets and businesses were observing a public holiday.

The multibillion-dollar financing highlights SoftBank’s continued commitment to artificial intelligence and OpenAI. The company has increasingly positioned AI as a central part of its investment strategy, making the upcoming OpenAI funding payment one of its most significant commitments in the sector.

With the bond sale, SoftBank is tapping global debt markets to secure longer-term financing ahead of the October 1 investment deadline while reducing its reliance on the previously arranged bridge loan.