SoftBank Group plans record $8b retail bond sale in Japan
The group is securing further funding for its massive AI investments and to refinance existing debt.
SoftBank Group is set to conduct a record $8 billion retail bond sale in Japan, marking the largest such issuance in the country. The move aims to raise funds for its AI investments, including those in OpenAI. The seven-year bonds are slated for pricing on September 4, with an anticipated interest rate ranging from 4.3% to 4.9%.
This strategic move aligns with the global surge to secure funds in the fiercely competitive AI sector, where major players such as Alphabet, Meta Platforms, Microsoft, and Amazon.com have collectively pledged nearly $2.4 trillion for AI-related expenditures. SoftBank intends to utilize the proceeds from this bond issuance to refinance existing retail bonds and support its AI strategy investments, which have totaled over $60 billion in total.
The company has committed to achieving an A credit rating from Japan Credit Rating Agency, despite facing challenges in attracting fixed-income investors due to weak deposit growth and concerns over overcapacity in the AI industry.
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Also reported by 1 other outlet
- SoftBank plans record US$6.3 billion retail bond sale in Japan businesstimes.com.sg
