SoftBank Secures $11.1 Billion in Fresh Funding to Expand OpenAI Investment
SoftBank Group is raising $11.1 billion through dollar- and euro-denominated bonds as it seeks to strengthen its financing capacity and support its growing investments in artificial intelligence.
The company issued three senior dollar bond tranches worth $1 billion, $4.5 billion and $4.5 billion, with maturities ranging from three and a half to seven and a half years. The bonds carry yields between 8.625% and 9.75%.
SoftBank also launched two euro-denominated bond tranches worth €500 million each, with four- and six-year maturities and yields of 7.125% and 8%, respectively.
The proceeds will help fund the final $10 billion installment of SoftBank’s planned $30 billion investment in OpenAI, the company behind ChatGPT. Once completed, SoftBank’s total investment in OpenAI is expected to reach $64.6 billion.
The latest bond issuance follows a ¥1 trillion ($6.32 billion) corporate bond sale by SoftBank earlier this month aimed at retail investors.