SoftBank raises another 260 billion yen in subordinated bonds to fund AI investments

Odaily Planet Daily News SoftBank Group plans to issue subordinated bonds again to individual investors, raising 260 billion yen ($1.6 billion), just about two months after its last bond issuance to retail investors. According to a document disclosed on Monday, the bonds have a term of 35 years and come with an issuer call option after five years. The bonds will be priced on June 5, with an initial five-year coupon guidance range of 4.8%-5.6%. Against the backdrop of growing demand for funds for AI-related investments, SoftBank is quickly returning to the retail bond market. Previously, the company scaled back a $10 billion margin loan program secured by its stake in OpenAI, highlighting increasing pressure on its financing situation. SoftBank's total investment in OpenAI has exceeded $60 billion, facing massive funding needs related to AI infrastructure spending and other investments. Measured by credit default swaps (CDS), SoftBank's credit risk remains among the highest in Japanese companies, having widened by about 70 basis points since 2026. (Jin Shi)