SoftBank issues $11.1 billion in bonds in OpenAI financing push
Technology investor SoftBank Group has issued $11.1 billion in dollar and euro-denominated bonds, according to a filing on September 24. The company aims to generate cash to continue investing in artificial intelligence. The bonds include $1 billion in senior notes with a 3-1/2-year term, $4.5 billion in 5-1/2-year senior notes, and another $4.5 billion in 7-1/2-year senior notes.
The interest rates on these bonds are 8.625%, 9.25%, and 9.75%, respectively. SoftBank also issued two €500 million tranches of euro-denominated senior notes with 4 and 6-year terms, yielding 7.125% and 8%, respectively. These bonds will be employed to fund the final $10 billion tranche of a $30 billion investment that SoftBank committed to making in OpenAI, the maker of ChatGPT.
When completed, this total investment will amount to $64.6 billion, taking into account the earlier $30 billion investment. Earlier this month, SoftBank issued ¥1 trillion ($6.32 billion) in corporate bonds for retail investors.
Written by urgent.news from Channel News Asia's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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