SoftBank Stock Slides as Investors Scrutinize Cost of Record Bond Sale

SoftBank Group Corp. (TYO:9984) shares slid on Friday as the initial optimism surrounding its landmark bond issuance gave way to investor concerns over its growing debt burden and potential challenges to its large-scale artificial intelligence bets.

Bond Sale Scrutiny

SoftBank's stock fell 2.6% to ¥6,185 after investors reassessed the terms of its recent $11.1 billion bond sale, the largest high-yield corporate bond offering on record globally. While the deal addresses near-term liquidity needs to fund its investment in OpenAI, the high cost of the debt is now a key focus.

The company priced the debt at what are reportedly its highest-ever yields for dollar-denominated bonds:

• $1 billion of 3.5-year bonds at a yield of 8.625%
• $4.5 billion of 5.5-year securities at 9.25%
• $4.5 billion of 7.5-year bonds at 9.75%

These terms lock in substantial financing costs for SoftBank, while the timeline for a return on its significant OpenAI investment remains uncertain due to regulatory hurdles and a delayed initial public offering.

AI Investment Headwinds

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Adding to investor caution are reports that Oracle has declared force majeure at a major data center project, dubbed Jupiter, citing rising costs and power supply issues. While SoftBank is not directly exposed to Jupiter, it is involved in the broader Stargate project, which is linked to its OpenAI investment. The development at Oracle signals potential headwinds for the complex and capital-intensive infrastructure required for advanced AI.

SoftBank's plans for a cash infusion have also been hampered by the delayed IPOs of both OpenAI and its data-center subsidiary, SB Energy, which were anticipated to launch as early as this month.

Market Signals

Unease is also reflecting in the credit markets. According to Investing.com, the cost to insure SoftBank's debt against default over a five-year period, as measured by credit default swaps, rose this month to its highest level since April 2025.

So far in 2026, SoftBank has issued $14.6 billion in high-yield bonds. This accounts for 63.4% of the entire high-yield corporate bond market across the Asia Pacific and Japan region, highlighting the scale of the company's reliance on debt financing.