SoftBank raising US$11.1bil in world's biggest high-yield corporate bond sale
TOKYO: Tech investor SoftBank Group is issuing US$11.1 billion in dollar- and euro-denominated bonds, set to be the largest high-yield corporate bond sale globally on record as it seeks to fund its mammoth bet on OpenAI.
Tech giant SoftBank Group is issuing $11.1 billion in dollar and euro-denominated bonds, a record high-yield corporate bond sale according to LSEG data. This massive issuance follows a previous $6.3 billion bond sale aimed at retail investors, and is expected to fuel scrutiny on SoftBank's finances, particularly concerning its high-stakes bet on AI and OpenAI.
Led by CEO Masayoshi Son, SoftBank has invested approximately $64.6 billion in OpenAI, which it owns about 13% of, while also purchasing ABB's robotics business for $5.4 billion and DigitalBridge for $3.1 billion. The sheer magnitude of these investments has led to higher interest rates and increased costs for insuring SoftBank's debt, but the issuance is anticipated to proceed smoothly.
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- SoftBank raising $11.1 billion in world's biggest high-yield corporate bond sale channelnewsasia.com
- SoftBank shares jump 7% after $11.1b bond sale for OpenAI techinasia.com
