SoftBank plans record $6.3 billion retail bond sale in Japan
The 7-year bonds are expected to be priced on Sept. 4, with an indicative coupon range of 4.3% to 4.9%, according to a company filing.
SoftBank Group is set to issue a record ¥1 trillion ($6.3 billion) retail bond in Japan to fund its investments in OpenAI, the developer behind the popular ChatGPT AI tool. The 7-year bonds are anticipated to be priced on September 4, with a coupon range of 4.3% to 4.9%, according to a company filing. This bond sale represents SoftBank's third issuance this year, following ¥418 billion in April and ¥260 billion in June.
The company has earmarked over $60 billion for investments in OpenAI, reflecting its commitment to the ChatGPT technology. SoftBank's expansion in data centers is driven by the rising demand from companies like OpenAI for AI solutions and services. The bond sale will bolster SoftBank's financial position as it navigates the competitive AI landscape, having recently reported a substantial quarterly profit surge driven by valuation gains from its OpenAI investment.
Additionally, SoftBank had previously explored a margin loan using its OpenAI stake, which could reduce its fundraising requirements. S&P Global Ratings recently upgraded SoftBank's outlook to stable from negative, citing improved financial ratios, and maintaining its long-term issuer credit rating at BB+, one step below investment grade.
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- SoftBank plans record $6.3b retail bond sale techinasia.com
