Softbank Group launches over $10 billion in bonds for OpenAI investment, term sheet shows

SoftBank Group Corp has issued $10 billion and 1 billion euro-denominated senior unsecured notes, as per a term sheet revealed on Monday. The dollar-denominated notes are divided into three lengths: 3-1/2, 5-1/2, and 7-1/2 years. The euro-denominated bonds are similarly split into four and six-year tenors, according to the term sheet.

The funds raised will be utilized to finance SoftBank's $10 billion payment for the third installment of its follow-on investment in OpenAI, which is anticipated to be finalized on October 1, and for general corporate uses, as stated in the term sheet. SoftBank had previously secured a $10 billion bridge loan facility to finance its OpenAI investment, and the bonds are set to cancel that debt, per the term sheet.

The bond issuances are projected to go live on September 24 and mature on September 29, the term sheet noted. SoftBank Group could not be reached for comment due to a holiday in Japan. Citigroup and JPMorgan are the lead underwriters of the notes, according to the term sheet.