SoftBank launches $11 billion junk bond deal to fund OpenAI investment

SoftBank Group Corp. Moved forward with a massive high-yield debt offering, seeking to raise the equivalent of more than $11 billion through a multi-currency bond deal earmarked directly for its expanding OpenAI investment according to Reuters. The financial maneuver by billionaire Masayoshi Son’s conglomerate represents a defining moment for corporate borrowing, placing the Japanese firm firmly at the center of debt-fueled artificial intelligence expansion.

The aggressive financing push comes as SoftBank's cumulative financial commitment to the ChatGPT maker approaches approximately $64.6 billion, which will secure a targeted 13% ownership stake according to Crypto Briefing. According to a term sheet cited by Reuters, the transaction comprises $10 billion in dollar-denominated senior unsecured notes and €1 billion in euro-denominated notes reported via Yahoo Finance. The dollar tranche is split across maturities of 3.5, 5.5, and 7.5 years, while the euro portion spans four-year and six-year tenors noted by Seoul Economic Daily.

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Should the offering close at its targeted size, it will set a historic benchmark. Yahoo Finance reports that it would become the largest non-financial corporate bond deal ever executed from Asia Pacific and Japan, surpassing a previous record held by 7-Eleven Inc. From January 2021. Seoul Economic Daily notes that, excluding distressed debt exchanges by companies on the brink of default, it stands as the largest speculative-grade bond sale ever launched by a single corporate issuer.

The capital raised from the bond sale will directly service SoftBank's $10 billion payment for the third tranche of its follow-on investment in OpenAI, which must be funded by October 1 according to Bloomberg coverage highlighted by Seoul Economic Daily. Furthermore, the transaction will permanently cancel a $10 billion bridge loan that SoftBank previously secured to fund the exact same investment stated in Yahoo Finance reporting.

Major credit rating agencies have evaluated the risk profile of the massive debt issuance. Fitch Ratings assigned the proposed notes a BB+ rating, which sits at the highest speculative-grade level per Yahoo Finance. Fitch indicated that leverage at the Japanese conglomerate is bound to increase as it fulfills its heavy investment commitments, though the firm is projected to maintain sufficient liquidity and continued access to debt markets according to Fitch Ratings analysis via Yahoo Finance.

The current bond offering forms just one piece of a broader, highly leveraged strategy deployed by SoftBank throughout the year. Livemint reports that SoftBank has already sold nearly $15 billion in multi-currency notes in 2026, making it the largest speculative-grade borrower in global bond markets. In addition to the bond sales, the conglomerate expanded a margin loan backed by shares in its chip design unit, Arm Holdings Plc, by $5 billion to reach $25 billion, and increased a bank credit facility by $450 million to a total of $6.5 billion according to Business Today.

Global economic pressures have added substantial weight to these borrowing activities. As U.S. Treasury yields have climbed amid persistent inflation, borrowing costs have spiked significantly noted by Seoul Economic Daily. Business Today reports that the yield on SoftBank's dollar bond maturing in 2031 rose to 8.2% earlier in September, up from a low of 6.7% in January. the cost of insuring against a default on SoftBank debt reached its highest level in three years according to Bloomberg figures cited by Seoul Economic Daily.

Market headwinds extend beyond credit spreads into valuation and liquidity questions surrounding artificial intelligence. Seoul Economic Daily highlights that expectations for liquidity in SoftBank's stake have faced turbulence after artificial intelligence industry leaders argued for slowing the pace of AI investment, and OpenAI Chief Executive Sam Altman stated that an initial public offering would not be possible this year per Bloomberg reporting. SoftBank's stock has dropped roughly 34% since hitting an all-time high in June, as investors scrutinize how the company plans to service its massive liabilities while waiting for an OpenAI listing timeline that may extend into 2027 reported by Yahoo Finance.

For ongoing updates on corporate debt markets and international Business coverage, monitor upcoming disclosures from major financial institutions.

What to Watch Next

• September 24, 2026: Official pricing slated for the $10 billion dollar tranche and €1 billion euro tranche of senior unsecured notes.
• September 29, 2026: Settlement and final closing date for the multi-currency junk bond offering.
• October 1, 2026: Scheduled deadline for SoftBank to fund its $10 billion payment for the third tranche of its follow-on investment in OpenAI.