SoftBank to Meet Investors for Potential Multi-Billion Dollar Bond Sale to Fund AI Strategy

SoftBank Group Corp. (TYO:9984) is preparing to meet with investors in New York to explore appetite for a significant U.S. dollar-denominated junk-bond sale, according to a report from Bloomberg. The Japanese technology conglomerate is seeking to raise substantial capital to refinance debt incurred from its large-scale investments in artificial intelligence.

Gauging Investor Appetite

Company executives, including Chief Financial Officer Yoshimitsu Goto, are scheduled to hold in-person discussions from Sept. 14 to Sept. 17 at Citigroup Inc.'s New York office. The meetings are being arranged by a consortium of major banks including Citigroup, Goldman Sachs Group Inc., JPMorgan Chase & Co., and Morgan Stanley.

The potential offering would be structured for qualified institutional buyers in the U.S. under Rule 144A. Sources cited by Bloomberg noted that these initial gatherings are exploratory and not yet tied to a specific bond offering.

Funding the AI Pivot

The primary purpose of the potential debt issuance is to secure long-term financing for SoftBank's AI-focused strategy. The company is reportedly considering raising $10 billion to $20 billion, with the possibility of including a tranche denominated in euros, according to people familiar with the matter.

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This new funding would help refinance a $40 billion bridge loan SoftBank obtained earlier this year to finance its investments, including a major stake in OpenAI. The company's multi-billion dollar push into AI has increased leverage on its balance sheet, prompting a strategic move to restructure its debt obligations.

Broader Debt Strategy

This potential U.S. offering follows another major fundraising effort in its home market. On Sept. 4, SoftBank priced Japan’s single largest corporate bond, raising ¥1 trillion ($6.5 billion) from retail investors.

By tapping both institutional markets abroad and retail investors at home, SoftBank is diversifying its funding sources as it manages the financial risks associated with its concentrated bets on the AI sector. The move to issue longer-term debt is seen as an effort to create a more stable capital structure to support its technology-centric growth ambitions.