Story
SoftBank Raises $11.1 Billion in Bonds to Fund OpenAI Investment
Summary
The Japanese technology investor issued a mix of dollar- and euro-denominated senior notes to finance the final $10 billion tranche of its investment commitment to AI developer OpenAI.
Japanese technology investor SoftBank Group has raised $11.1 billion through a multi-currency bond issuance, according to a corporate filing. The capital is earmarked to continue the company's significant investments in artificial intelligence, primarily to complete a major funding commitment to ChatGPT-maker OpenAI.
Issuance Details
The debt offering consists of several tranches of senior notes denominated in U.S. dollars and euros. The company structured the issuance to attract a broad base of international investors.
- Dollar-denominated notes:
- $1 billion at a 3.5-year term with an 8.625% interest rate.
- $4.5 billion at a 5.5-year term with a 9.25% interest rate.
- $4.5 billion at a 7.5-year term with a 9.75% interest rate.
- Euro-denominated notes:
- €500 million at a four-year term, yielding 7.125%.
- €500 million at a six-year term, yielding 8.0%.
AdStrategic AI Focus
SoftBank stated the proceeds will be used to fund the final $10 billion installment of a previously announced $30 billion investment commitment to OpenAI. Upon completion, this will bring SoftBank's total investment in the prominent AI firm to $64.6 billion.
This bond sale is part of a broader capital-raising effort by the investment giant. Earlier this month, SoftBank issued 1 trillion yen ($6.32 billion) in corporate bonds targeted specifically at retail investors in Japan, signaling its aggressive strategy to secure cash for its AI-centric portfolio.
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