SoftBank lines up a new $60bn bond to keep its OpenAI bet funded
The reported raise would dwarf the group’s record retail deal and stretch a balance sheet already bent around Masayoshi Son’s AI ambitions.
The Big Number
- Sixty billion dollars is a substantial amount of bond, even by SoftBank Group’s standards.
- According to Bloomberg, the Japanese conglomerate is preparing to raise up to $60bn in fresh debt, a target that eclipses previous deals and directly supports its growing investment in OpenAI.
Context
- This follows a series of smaller bond issuances, including a record ¥600bn ($4.1bn) retail bond, and several dollar and euro deals targeting overseas investors.
- It builds upon existing borrowing for OpenAI, including a $40bn bridge loan and a pending $10bn margin loan secured against SoftBank’s OpenAI shares.
A Ceiling, Not a Sum
- While the $60bn is presented as a ceiling, it represents multiple bond tranches across different currencies and investor types, rather than a single massive deal.
- So far in 2026, SoftBank has issued approximately $7.8bn in bonds, indicating an ambitious borrowing target.
Son’s AI Pledge
- Masayoshi Son has pledged over $60bn to OpenAI, with $10bn tranches closing in July and October.
- Bridge debt was initially used but a bond of this scale would provide longer term funding through retail and institutional investors, replacing bank loans.
Japanese Savers and High Coupons
- SoftBank leverages the captive demand for lending to Japan’s national champion among domestic households through brokerages. This allows them to issue substantial sums domestically even as global investors demand higher returns for AI-related debt.
Debt Stack Concerns
- The broader debt stack is where the story becomes more complex. SoftBank has a large outstanding bond balance of ¥7tn (around $46bn) and aims to maintain a loan-to-value ratio below 25%.
- Analysts have warned about potential liquidity pressure as OpenAI funding requirements outpace cash flow.
Ratings Agency Concern
- S&P Global lowered its outlook to negative in March after a $30bn OpenAI investment, citing concentration in early-stage and privately held investments. They expressed concern about the timing of cash inflows and outflows.