Why is SoftBank Group stock sliding today?

SoftBank Group Corp.'s stock experienced a 2.6% decline to ¥6,185 on Friday, as the initial excitement surrounding the company’s largest high-yield corporate bond sale gave way to skepticism over its mounting debt. Concerns over growing AI funding and management issues arose after Oracle declared force majeure on a key data center project, Jupiter, due to escalating costs and power supply problems.

Although SoftBank isn't directly affected by Jupiter, its involvement in the broader Stargate project, linked to its OpenAI investment, raises potential challenges. The $11.1 billion bond sale, the largest high-yield corporate bond deal globally on record, was intended to finance the OpenAI bet, but its terms are now under closer examination by investors.

SoftBank raised $1 billion in 3.5-year bonds at an 8.625% yield and secured $4.5 billion in 5.5-year securities at a 9.25% yield, with the longer-term 7.5-year tranche priced at a record 9.75%. While the bond sale alleviated short-term liquidity issues, it locks in high funding costs (9%-10%) as OpenAI payoff timelines remain uncertain due to regulatory headwinds, a delayed listing, and monetization concerns.

Delays in OpenAI and SB Energy IPO plans have dampened investor confidence. Credit markets also show unease, with the insurance cost to protect against a SoftBank default rising to its highest level since April 2025. SoftBank has issued $14.6 billion in high-yield bonds so far in 2026, constituting 63.4% of the entire Asia Pacific and Japan high-yield corporate bond market.