SoftBank issues $11.1 billion in bonds in OpenAI financing push

SoftBank Group has issued $11.1 billion in bonds to fund its investments in artificial intelligence, according to a filing made on Thursday. The company issued dollar-denominated senior notes in three different terms: $1 billion at a 3-1/2-year term with an 8.625% interest rate, $4.5 billion at a 5-1/2-year term with a 9.25% rate, and $4.5 billion at a 7-1/2-year term with a 9.75% yield.

Additionally, SoftBank issued two €500 million tranches of euro-denominated senior notes with terms of four and six years, offering interest rates of 7.125% and 8%, respectively. These bonds will be utilized to finance the last $10 billion of the $30 billion SoftBank plans to invest in OpenAI, bringing its total investment to $64.6 billion when completed. This month, the company issued ¥1 trillion ($6.32 billion) in corporate bonds for retail investors.