SoftBank Seeks Another $10 Billion Loan Against OpenAI Stake Just Weeks After First Deal
10 Sources
[1]
SoftBank seeks a second $10bn loan against its OpenAI stake
SoftBank is seeking a further $10bn loan to fund its OpenAI stake, Bloomberg reported on Friday. It closed a loan of exactly that size, secured against the same asset, 22 days earlier. TNW has not independently verified the report and could not review its full terms, so what follows sets the
[2]
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
[3]
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
[4]
SoftBank seeks another $10 billion loan for OpenAI stake funding
The interest margin on the two-year facility would be around 275 basis point over the benchmark Secured Overnight Financing Rate, and Mizuho Bank Ltd. is the mandated lead arranger and bookrunner, said the people, who asked not to be identified as the matter is private. SoftBank Group Corp. is
[5]
SoftBank Seeks $10 Billion Loan to Refinance OpenAI Stake | PYMNTS.com
The proceeds of the loan could help repay a $40 billion bridge loan SoftBank secured for its OpenAI investments, according to the report. SoftBank is also preparing a potential bond sale of up to $20 billion, the report said. Earlier this month, SoftBank secured a $10 billion loan backed by its
[6]
SoftBank bond sale: SoftBank mulls up to $20 billion bond sale for OpenAI financing
The offering could be denominated in dollars and euros and could come as early as September, said the people, who asked not to be identified discussing private matters. The talks are still ongoing and details could change, the people added. SoftBank Group Corp. is talking with investment banks
[7]
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
[8]
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
[9]
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
[10]
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
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SoftBank is pursuing a second $10 billion loan secured against its OpenAI stake, arriving just 22 days after closing an identical facility. The Japanese conglomerate is accelerating its borrowing cadence to refinance a $40 billion bridge loan due March 2027, while simultaneously planning up to $20 billion in bond sales to fund its $64.6 billion AI investment bet.
SoftBank Returns to Credit Markets With Aggressive Borrowing Timeline
SoftBank is seeking a second $10 billion loan backed by its OpenAI stake, just 22 days after closing a facility of exactly the same size
1
. The two-year loan would carry an interest margin of around 275 basis points over the Secured Overnight Financing Rate, with Mizuho Bank serving as mandated lead arranger and bookrunner4
. This rapid succession of financing moves signals an accelerated timeline in SoftBank's efforts to secure permanent funding for what has become the company's defining AI investment strategy.The Japanese conglomerate signed a $40 billion unsecured bridge facility in March 2025 to fund its OpenAI commitments, and that bridge loan must be repaid or refinanced by March 2027
1
. Proceeds from the new $10 billion loan could partly be used to repay this bridge loan4
, which was designed as temporary financing by nature. SoftBank has committed more than $60 billion to OpenAI and adjacent AI infrastructure1
, representing massive exposure to hold on short-dated debt that requires multiple instruments arriving in succession to manage.Record Retail Bond Sale Targets Japanese Households
SoftBank is simultaneously planning a record ¥1 trillion retail bond sale, approximately $6.3 billion, marking the largest retail bond offering ever by a Japanese company
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3
. The seven-year bonds are expected to price on September 4 with an indicative coupon range of 4.3% to 4.9%2
3
. While SoftBank expects an A rating from Japan Credit Rating Agency, international raters see it differently—S&P has the company at BB+, one notch below investment grade2
.
Source: The Next Web
Analysts reveal why SoftBank turned to retail investors rather than institutional lenders. "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
2
. This marks SoftBank's third retail bond of the year, following ¥418 billion in April and ¥260 billion in June2
. The terms are built to tempt Japanese households, offering significantly higher yields compared to traditional bank deposits.Valuation Challenges and Collateral Concerns Mount
The margin loan structure reveals the difficulty of pledging private company shares as collateral. SoftBank initially approached lenders in April for $10 billion secured on OpenAI shares but immediately hit problems—nobody could agree what the collateral was worth
1
. The target was cut to $6 billion in May, then revived at $10 billion in July only after SoftBank added a corporate guarantee, giving lenders recourse to the parent company if pledged shares fell short1
.OpenAI filed confidentially with the SEC in June, pointing to an eventual listing that would establish a market price for the shares SoftBank keeps pledging
1
. Until that happens, every lender is taking a view on a private valuation that exists only on paper. SoftBank's initial OpenAI investment came in 2024 when the AI startup was valued at $150 billion, but by April 2025, OpenAI's valuation had ballooned to $852 billion5
.Related Stories
Masayoshi Son Doubles Down Despite Credit Risk Warnings
SoftBank founder and CEO Masayoshi Son has built the group around this position, and the company's debt-fueled AI bet now moves with OpenAI's fortunes more than with anything else on its balance sheet
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. Son told CNBC in June that the AI revolution is "probably 50 times bigger than the dot-com one" and represents "the biggest revolution of technology and realization that mankind ever experienced"5
.
Source: The Next Web
The company has made $20 billion in follow-on investments in OpenAI in fiscal year 2026 and plans to complete a third tranche on October 1, bringing its total AI investment to $64.6 billion and its ownership stake to about 13%
5
. To support these AI ambitions, SoftBank has been monetizing its portfolio, including selling its entire stake in Nvidia and securing financing through shares in chip designer Arm, while also divesting holdings in T-Mobile3
.Broader AI Spending Trends and Future Implications
SoftBank's aggressive borrowing occurs as US tech firms plan to pour trillions of dollars into data centers and other AI infrastructure. Companies have already borrowed more than $410 billion so far this year for such facilities and other AI investments in the bond markets alone
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. Alphabet, Meta, Microsoft and Amazon have committed nearly $2.4 trillion to AI-related spending, while Alibaba raised about $10 billion in Hong Kong for chips and data centers2
.Bloomberg Intelligence analyst Sharon Chen notes that even after the ¥1 trillion retail bond, a shortfall above $20 billion remains, making offshore issuance likely in the near term
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. SoftBank is also considering a potential bond sale of $10 billion to $20 billion to help refinance the bridge loan1
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. The syndication has held up so far, with twenty-one additional lenders joining the $40 billion facility after its initial signing1
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Source: PYMNTS
SoftBank and OpenAI launched SB OAI Japan, a joint venture offering an AI-powered cybersecurity solution in Japan
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. SoftBank President Junichi Miyakawa stated they would leverage practical expertise acquired through OpenAI's cybersecurity technologies to confront increasingly sophisticated cyber threats targeting Japan's critical infrastructure5
. The company's equity side has been forgiving—SoftBank overtook Toyota as Japan's most valuable listed company on the strength of the AI rally1
, though shares fell following the latest announcements amid broader declines in Asian tech stocks3
.References
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