SoftBank mulls up to $20 billion bond sale for OpenAI financing
This digest was compiled by AI from multiple sources — links to the originals are below.
SoftBank Group Corp. is in talks with investment banks about a potential $10 billion to $20 billion bond offering to refinance a loan for its investment in OpenAI. The offering could be denominated in dollars and euros and could come as early as September. Proceeds would partly repay a $40 billion bridge loan secured earlier this year for the OpenAI investment.
Key Facts
- SoftBank is discussing a bond offering of $10 billion to $20 billion with investment banks, according to people familiar with the matter.
- The offering could be denominated in dollars and euros and could come as early as September.
- Proceeds would partly repay a $40 billion bridge loan secured earlier this year for SoftBank's OpenAI investment.
- SoftBank is slated to invest close to $65 billion in OpenAI by October, funded in part by loans.
- Companies have borrowed more than $410 billion so far this year for AI facilities and investments in bond markets alone, according to Bloomberg data.
Bond Sale Details
SoftBank is exploring a 144A format for the first time in more than a decade, which would allow the notes to be sold to institutional investors in the US. That format would help the company tap a larger pool of capital and potentially boost demand for the sale. If the offering hits the upper end of the target range, it would be the largest such deal from any Asian firm this year, according to Bloomberg data. It would also mark SoftBank's second foray into the offshore bond market this year.
AI Financing Context
The bond sale would add to a slew of fundraising by companies looking to deepen their reach into artificial intelligence. Some firms are turning to junk bond investors for AI-related funding, even for debt that is investment-grade, as competition for capital heats up. US tech firms are planning to pour trillions of dollars into data centers and other AI infrastructure in the coming years. Companies have already borrowed more than $410 billion so far this year for such facilities and other AI investments in the bond markets alone, according to Bloomberg data.
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SoftBank mulls up to $20 billion bond sale for OpenAI financing
