SoftBank raising $11.1 billion in world's biggest high-yield corporate bond sale
SoftBank Group is set to issue $11.1 billion in high-yield corporate bonds, marking the largest such sale globally, according to the latest data. The funding aims to support the company's ambitious investment in OpenAI, the artificial intelligence startup, as well as acquisitions of robotics firm ABB and digital bridge. Under the leadership of CEO Masayoshi Son, SoftBank has pledged $64.6 billion towards OpenAI, holding approximately 13% stake in the company.
The issuance of these bonds comes with higher yields to reflect the increased financial risks. SoftBank's credit rating was downgraded due to concerns surrounding its heavy investments in AI and the potential vulnerability of its finances in case of a significant dip in market sentiment towards OpenAI and the AI sector.
Written by urgent.news from CNA - Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 2 other outlets
- SoftBank shares jump 7% after $11.1b bond sale for OpenAI techinasia.com
- SoftBank raises $11.1 billion in world's biggest high-yield corporate bond sale channelnewsasia.com
