SoftBank Plans Record $6.3bn Retail Bond Sale to Fund AI Investments as Banks Hesitate on Risk

SoftBank plans record $6.3bn retail bond sale in Japan

A record 1 trillion yen retail bond, from an issuer rated one notch below investment grade, in a format European rules would make very hard to replicate SoftBank plans a record 1 trillion yen retail bond sale, about $6.3bn, the largest by any issuer in Japan, to fund investment commitments to OpenAI. Analysts say banks were reluctant to take the risk, leaving the deal dependent on retail investors. SoftBank has found a lender of last resort for its AI bet, and it is Japanese households. The group plans a record ¥1 trillion retail bond sale, about $6.3bn and the largest by any issuer in Japan, to fund its investment commitments to OpenAI. The terms are built to be tempting. The seven-year bonds are expected to price on 4 September with an indicative coupon of 4.3% to 4.9%, and SoftBank says it expects an A rating from Japan Credit Rating Agency. International raters see it differently. S&P has SoftBank at BB+, one notch below investment grade, having revised its outlook to stable from negative in July. The reason it is going to retail is not enthusiasm. "Banks are finding it difficult to take on the risk given weak deposit growth, the credit rating and the seven-year duration, leaving the deal more reliant on retail investors," said Yuuki Fukumoto of NLI Research Institute, in a pattern that has already forced Oracle to find anchors outside the banking system. It is also becoming routine. This is SoftBank's third retail bond of the year, after raising ¥418bn in April and ¥260bn in June. Even ¥1 trillion does not close the gap. Bloomberg Intelligence's Sharon Chen says a shortfall above $20bn remains after this issue, making offshore issuance likely in the near term. The commitments behind it are enormous. SoftBank has pledged more than $60bn to OpenAI and has separately sought a $10bn margin loan secured against its stake in the company. Everyone is raising at once. Alphabet, Meta, Microsoft and Amazon have committed nearly $2.4tn to AI-related spending, and Alibaba raised about $10bn in Hong Kong on Monday for chips and data centres. A European issuer could not do this the same way. Bond prospectuses across the EEA routinely carry a prohibition on sales to retail investors, because the PRIIPs rules require a key information document that most issuers decline to produce. That sits awkwardly with what Brussels says it wants. The Savings and Investments Union, adopted in March 2025, exists to move some of the €10tn European households hold, roughly 70% of it sitting in bank deposits, into capital markets, at a moment when Masayoshi Son calls bubble talk absurd. Japan has now shown what mobilised savings look like in practice. A retail saver funding a seven-year bet on a company that does not yet know how the technology will pay.

SoftBank to issue record $6.3 billion retail bonds to fund AI investments

SoftBank Group announced plans to issue 1 trillion yen (approximately $6.3 billion) in retail bonds, aiming to fund its expanding artificial intelligence investment strategy. This issuance will set a record as the largest retail bond offering ever by a Japanese company, nearly doubling SoftBank's previous record of 600 billion yen from April 2025. The seven-year bonds are expected to carry an indicative coupon range of 4.3% to 4.9%, with final pricing anticipated on September 4. Proceeds from this bond sale will be allocated to AI-related investments and the repayment of previously issued bonds, as stated by a company spokeswoman to The Wall Street Journal. SoftBank's bond offering coincides with NTT Finance's issuance of 1 trillion yen in debt to institutional investors, marking it as the largest corporate bond sale by a Japanese company. This move comes amid a surge in capital-raising activities within Asia's technology sector, as companies like Alibaba Group also seek significant funding for AI capabilities. In recent years, retail bonds have become a crucial financing source for SoftBank, which has been the most active issuer among Japanese corporates. The company frequently engages the domestic retail market through offerings such as the "Fukuoka SoftBank Hawks Bonds," which provide higher yields compared to traditional bank deposits. To support its AI ambitions, SoftBank has been monetizing its portfolio, including the sale of its entire stake in Nvidia and securing financing through shares in chip designer Arm. Additionally, the company has divested holdings in T-Mobile. On the same day of the announcement, SoftBank's shares fell, reflecting a broader decline in Asian tech stocks, with the Nikkei 225 index down 0.5%.

SoftBank Group: SoftBank plans $6.29 billion corporate bond issuance amid AI fundraising boom

The issuance is SoftBank's largest ever and nearly twice the size ⁠of its previous record - a 600 billion yen offering issued in April 2025. Japan's SoftBank Group said on Monday it plans to issue 1 trillion yen ($6.29 billion) of seven-year corporate bonds aimed at individual investors. The technology investor ⁠set a ⁠provisional coupon range between 4.3% and 4.9% for the bonds, according to a regulatory filing. SoftBank has been ramping up spending on artificial intelligence-related investments, financing the ⁠push through borrowings, bond sales and asset disposals, including sales of holdings ⁠in Nvidia and T-Mobile. Companies across Asia are stepping up investment in AI infrastructure. Chinese e-commerce and cloud computing company Alibaba launched a $10.2 billion share placement on Sunday to invest in its "full stack" AI capabilities. The issuance is SoftBank's largest ever and nearly twice the size ⁠of its previous record - a 600 billion yen offering issued in April 2025. SoftBank is expected to announce the final terms of the bond issuance on September 4. ($1 = 158.9000 yen) (Reporting by Hina Suzuki; Editing by Rashmi Aich)

SoftBank plans $6.29 billion corporate bond issuance amid AI fundraising boom

SoftBank is gearing up for a historic bond issuance aimed at securing funding for its robust investments in artificial intelligence. This ambitious seven-year corporate bond aims to raise a staggering one trillion yen from individual investors. With a provisional coupon rate established, this marks SoftBank's largest issuance to date, as companies throughout Asia also ramp up spending to enhance their AI infrastructure. Final terms are anticipated soon. Japan's SoftBank Group said on Monday it plans to issue 1 trillion yen ($6.29 billion) of seven-year corporate bonds aimed at individual investors. The technology investor ⁠set a ⁠provisional coupon range between 4.3% and 4.9% for the bonds, according to a regulatory filing. SoftBank has been ramping up spending on artificial intelligence-related investments, financing the ⁠push through borrowings, bond sales and asset disposals, including sales of holdings ⁠in Nvidia and T-Mobile. Companies across Asia are stepping up investment in AI infrastructure. Chinese e-commerce and cloud computing company Alibaba launched a $10.2 billion share placement on Sunday to invest in its "full stack" AI capabilities. The issuance is SoftBank's largest ever and nearly twice the size ⁠of its previous record - a 600 billion yen offering issued in April 2025. US MarketsPowered By As on 22 Aug 2026, 01:30 AM IST S&P 500 Top Gainers Robinhood Markets108.13(13.70%) Moderna145.13(8.86%) Coinbase Global186.49(8.20%) Freeport-McMoRan76.66(7.64%) Gainers" S&P 500 Top Losers Coterra Energy32.56(-8.62%) Sempra82.89(-5.14%) Edison Intl71.59(-4.11%) American Electric Power120.94(-3.79%) Losers" SoftBank is expected to announce the final terms of the bond issuance on September 4.

SoftBank plans record $6.3 bln bond sale as AI spending accelerates By Investing.com

Investing.com-- SoftBank Group (TYO:9984) said on Monday it plans to raise 1 trillion yen ($6.3 billion) through a retail bond sale, the largest such offering by a Japanese issuer, as the conglomerate seeks to fund its growing investment commitments to OpenAI. The seven-year bonds are expected to be priced on Sept. 4, with an indicative coupon of 4.3% to 4.9%, according to a company filing on Monday. Tokyo-listed SoftBank shares fell 2.6% to 5,118.0 yen by 01:11 GMT. Get real-time updates on market-moving news with InvestingPro -- at 55% off now The offering period will run from Sept. 7 to Sept. 16, with the bonds scheduled to be issued on Sept. 17 and mature on Sept. 16, 2033. SoftBank has been ramping up spending on AI-related investments and infrastructure, including commitments to OpenAI, as demand for computing capacity grows. SoftBank has committed more than $60 billion to investments in OpenAI and is also accelerating spending on data centers to expand computing capacity. The company has considered a margin loan backed by its OpenAI stake, earlier reports showed.

SoftBank Plans Record Retail Bond Issuance Amid AI Push -- Update

TOKYO--SoftBank Group plans to issue a record volume of retail bonds to partly fund its expanding artificial intelligence investments, as the company deepens its multi-billion-dollar commitments to OpenAI and related infrastructure projects. The Japanese technology conglomerate said Monday that it plans to issue 1 trillion yen, equivalent to $6.3 billion, of yen-denominated retail bonds. The seven-year bonds will be priced on Sept. 4, with an indicative coupon of 4.3% to 4.9%. Proceeds from the issuance will be used for AI-related investments and to repay previously issued bonds, a company spokeswoman said. SoftBank's latest issuance will be the biggest retail bond offering ever by a Japanese company and ties with NTT Finance's 1-trillion-yen issuance of debt to institutional investors, according to I-N Information Systems. The fundraising comes as SoftBank seeks to finance an increasingly ambitious AI strategy. The group has emerged as one of OpenAI's largest backers, with cumulative investments and commitments expected to exceed $60 billion. SoftBank regularly taps the domestic retail market with "Fukuoka SoftBank Hawks Bonds." Named after a baseball team owned by the company, the notes offer higher yields than traditional bank deposits. Retail bonds have been a vital source of financing for SoftBank, which has been the most prolific issuer among Japanese corporates in recent years in volume terms, I-N Information Systems data shows. Although the upcoming issue is long-dated, a coupon above 4% should appeal to investors seeking higher yields than low-paying bank deposits, said Masahiro Ichikawa, chief market strategist at Sumitomo Mitsui DS Asset Management. Retail investors are generally more flexible than institutional buyers regarding issuer credit risk, which could also support demand for the bonds, Ichikawa said. "With the market pricing the Bank of Japan's terminal rate at just under 2%, this level seems reasonably appealing" for mom-and-pop investors, he added. The latest offering is expected to provide more firepower for SoftBank's long-term AI investment agenda, including its growing exposure to OpenAI, analysts said. But some of them warned that rising interest rates could add to concerns about the group's financial position. While Japanese credit rating agencies give SoftBank solid marks, major foreign agencies maintain speculative-grade ratings on the company due to its high leverage and exposure to volatile tech assets. To help fund the AI push, SoftBank has also monetized portfolio holdings, including the sale of its entire stake in Nvidia, and expanded financing secured by its shares of Arm, the chip designer majority-owned by the Japanese investment company. Shares in SoftBank Group fell 5.3% Monday to their lowest since late July, tracking weakness in other AI-related stocks.