Economy & Markets

SoftBank Group is preparing a massive bond sale exceeding $11 billion, marking one of the largest junk bond deals ever executed. The company aims to raise $10 billion in U.S. dollar bonds spanning three maturities and 1 billion euros across two maturities. These funds are designated to support a follow-on investment in OpenAI, which insiders expect to close next month. Discussions regarding investor interest and pricing levels remain in early stages, with potential pricing targeted for Thursday, though terms may shift before finalization. Led by billionaire Masayoshi Son, SoftBank has already committed nearly $65 billion to OpenAI, cementing its position as a central player in AI-related financing. This new issuance adds to aggressive debt activities throughout 2026, where SoftBank has become the largest junk-rated borrower by selling nearly $15 billion in notes year-to-date. Recent financing maneuvers include arranging approximately $21 billion last week through various credit lines and loans, including increases to ARM Holdings-backed facilities and Apollo Global Management partnerships. The bond launch occurs amid rising global borrowing costs and persistent inflation, impacting SoftBank's debt economics. The yield on SoftBank's 2031-dollar bonds has climbed sharply from 6.7% to 8.2% this year, suggesting the new issuance could set record yields for the company in both currencies. While the deal would establish new benchmarks for SoftBank's debt profile, the company has not yet provided official comment, and figures remain subject to change as market conditions evolve