(Oct 23): SoftBank Group Corp sold about US$2.9 billion (RM12.26 billion) through an offering of subordinated hybrid bonds in dollars and euros, as the company steps up global fundraising to fuel investments in artificial intelligence (AI), including OpenAI.
The note sale involved two dollar tranches totalling $2 billion and a €750 million (US$871 million) euro bond, the company said in a statement on Thursday. The yield for the longer-tenor dollar tranche is 8.25%, while the euro bond is priced to yield 6.5%.
The deal highlights overseas demand for the debt of billionaire Masayoshi Son’s tech investment firm, even as ratings companies have kept SoftBank junk-rated. The firm in July sold a combined US$4.2 billion of dollar and euro notes.
Son has pledged to invest US$500 billion over four years under the “Stargate” AI initiative. SoftBank has also secured funds in its home market, having raised ¥820 billion (US$5.4 billion) in Japan so far in 2025, the most among local issuers according to data compiled by Bloomberg.
See also: Asian stocks, gold retreat as momentum unwinds
See also: Asian stocks appear mixed, gold steadies after selldown
The subordinated bonds are classified as interest-bearing debt under accounting rules. Yet they possess equity-like characteristics, leading rating agencies to recognise 50% of the issuance amount as equity, SoftBank Group said in the statement.
The company is also in talks to obtain a US$5 billion margin loan secured by shares of chip unit Arm Holdings Plc, Bloomberg News reported earlier this month.
During a global investor call on Tuesday, SoftBank management said the firm still plans to complete a US$30 billion investment tranche in OpenAI by year-end, without providing a more specific timeline and declining to disclose its current stake in OpenAI, according to people familiar with the matter.
Uploaded by Liza Shireen Koshy
