SoftBank plans to issue ¥1 trillion ($6.3B) in seven-year bonds to retail investors, in what would be Japan’s largest retail bond offering by any issuer.
The Japanese technology group said the proceeds will help fund its growing investment commitments to OpenAI, along with the expansion of data centers and artificial intelligence infrastructure. The bonds are expected to be priced on September 4, with an indicative annual yield of 4.3% to 4.9%.
SoftBank expects the issue to receive an “A” rating from Japan Credit Rating Agency. The offering follows two retail bond sales this year, which raised ¥418 billion in April and ¥260 billion in June.
The company has committed more than $60B to OpenAI and is accelerating data center investments to expand its computing capacity. However, analysts cited in the announcement expect the bonds to be priced near the top of the yield range and estimate that SoftBank will still face a funding gap of more than $20B after the sale.
The financing comes as major technology companies increase spending on AI infrastructure, while investors continue to assess whether future returns will justify the sector’s rising debt and capital requirements.
Source: Jawlah
