SoftBank issues $11.1 billion in bonds in OpenAI financing push

SoftBank Group has issued a massive $11.1 billion in bonds, making it the largest high-yield bond sale by an Asia-Pacific issuer on record, as it attempts to finance its ambitious investment in OpenAI. The financing follows a $6.3 billion bond issuance aimed at retail investors this month, raising concerns about SoftBank's financial health in case OpenAI and other AI firms face negative market sentiment.

SoftBank has pledged $64.6 billion to OpenAI, alongside billions more in AI infrastructure projects, as part of founder Masayoshi Son's strategy to position the Japanese conglomerate as a leading investor in the sector. The company issued $1 billion in senior notes with an 8.625% interest rate, $4.5 billion in notes with 9.25% interest over 5-1/2 years, and another $4.5 billion with 9.75% interest over 7-1/2 years.

SoftBank also issued €500 million in senior notes with yields of 7.125% for a four-year term and 8% for a six-year term. The cost of insuring SoftBank's debt against default has risen since June, with the five-year credit default swap spread exceeding 400 basis points this week, compared to 280 basis points in June and 200 basis points in October 2025.

Despite the increased risk, SoftBank's share price surged by more than 6% in morning trading on Thursday following national holidays in Tokyo. The company aims to maintain its loan-to-value ratio under 25% in normal circumstances, rising to 35% in extraordinary situations. As of June 2023, SoftBank's loan-to-value ratio stood at 13%.