Story
SoftBank Stock Surges Over 5% on Record-Setting Bond Deal for AI Investment
Summary
Shares of SoftBank Group jumped after the company priced a landmark $11.1 billion bond offering to fund its AI ambitions, a deal that saw overwhelming investor demand and could set a regional record.
SoftBank Group Corp. (TYO:9984) shares surged 5.1% to ¥6,638 on Thursday, as investors reacted to a series of positive catalysts, including a landmark bond issuance to fund the company's significant artificial intelligence investments.
The rally was amplified as Tokyo's financial markets reopened after being closed Wednesday for the Autumnal Equinox Day holiday, leading to a catch-up trade that also lifted the broader Nikkei 225 index by nearly 2%.
Landmark Bond Offering Sees Heavy Demand
The primary driver for the stock's advance was SoftBank's successful pricing of a massive $11.1 billion high-yield bond offering. The deal attracted more than $20 billion in orders from investors, approximately double the planned size, signaling robust market confidence in the company's AI-focused strategy.
Proceeds from the sale are designated for SoftBank's $10 billion investment in AI giant OpenAI, with that transaction expected to close on October 1, according to Investing.com. The dollar-denominated senior notes included:
- $1 billion of 3.5-year notes at an 8.625% interest rate
- $4.5 billion of 5.5-year notes at a 9.25% interest rate
- $4.5 billion of 7.5-year notes at a 9.75% interest rate
AdIf the offering closes at its intended size, it would mark the largest-ever non-financial corporate bond deal from the Asia Pacific and Japan region, surpassing a $10.93 billion issuance by 7-Eleven Inc. in 2021.
Additional Financial and Corporate Tailwinds
Investor sentiment was further bolstered by parallel financing developments. Apollo Global Management is reportedly in discussions with SoftBank to increase the size of a loan to $9 billion from an initial $5.4 billion, also to support the OpenAI investment.
Separately, SoftBank's acquisition of DigitalBridge, valued at approximately $4 billion, received all necessary regulatory approvals as of September 22, with the deal's closing described as imminent. These combined factors underscore the deep institutional support for SoftBank's strategic pivot toward artificial intelligence.
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