SoftBank issues another 260 billion yen in subordinate bonds to finance AI investments

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Odaily Planet Daily News: SoftBank Group plans to issue subordinate bonds again to individual investors, raising 260 billion yen ($1.6 billion), just about two months after its last bond issuance targeted at retail investors. According to a document disclosed on Monday, this batch of bonds has a 35-year maturity and includes an option for the issuer to redeem early after 5 years. The bonds will be priced on June 5, with an initial 5-year coupon guidance range of 4.8% to 5.6%. Against the backdrop of increasing investment funding needs related to artificial intelligence, SoftBank is rapidly returning to the retail bond market. Previously, the company had scaled back a $10 billion margin loan plan secured by its OpenAI holdings, highlighting growing pressure on its financing situation. SoftBank's investment in OpenAI has exceeded $60 billion, facing massive financing demands related to AI infrastructure spending and other investments. Measured by credit default swaps (CDS), SoftBank's credit risk remains one of the highest among Japanese companies, having widened by about 70 basis points since 2026. (Jin10)
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