SoftBank Stock Surges Over 5% on Record $11.1 Billion Bond Deal

SoftBank Group Corp. (9984.T) shares surged 5.1% to ¥6,638 in Tokyo on Thursday, as the technology investment giant successfully priced a massive bond offering and Japanese markets rallied after reopening from a holiday.

Landmark Bond Deal Signals Strong AI Backing

SoftBank officially priced a landmark $11.1 billion high-yield bond offering, which attracted more than $20 billion in investor orders, according to reports. The strong demand, approximately double the issuance size, signals robust institutional appetite for the company's aggressive financing strategy centered on artificial intelligence.

The proceeds are earmarked to fund SoftBank's $10 billion contribution to the third tranche of its investment in AI leader OpenAI, a deal expected to close on October 1. The dollar- and euro-denominated issuance includes several tranches of senior notes with maturities ranging from 3.5 to 7.5 years and interest rates between 8.625% and 9.75%.

If the offering closes at its intended size, it would become the largest non-financial corporate bond deal ever from the Asia Pacific and Japan region, surpassing a $10.93 billion deal by 7-Eleven in 2021.

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Market Context and Corporate Catalysts

The stock's advance was also supported by a broader market rally, with the Nikkei 225 index climbing nearly 2%. Tokyo's markets were closed Wednesday for the Autumnal Equinox Day holiday, leading investors to react to multiple days of accumulated news in a single session.

Adding to the positive sentiment, Apollo Global Management is reportedly in talks with SoftBank to increase an existing loan to $9 billion from $5.4 billion to further support the OpenAI investment. Separately, SoftBank's approximately $4 billion acquisition of DigitalBridge received all necessary regulatory approvals as of September 22, with the deal's closing imminent.