# SoftBank Planning Record Bond Issuance of 1 Trillion Yen

SoftBank Group is preparing to issue approximately 1 trillion yen ($6.26 billion) worth of seven-year corporate bonds targeted at Japanese retail investors. This will be the largest such issuance by the Japanese company for retail investors.

The bond offering is being planned during a period when credit markets related to AI are facing additional pressure. Nvidia's five-year credit default swap spread exceeded the maximum recorded at the end of July, while long-term government bond yields reached their highest levels in several decades.

SoftBank is considered one of the most prominent representatives financing AI infrastructure in Asia. The company has already issued 1.6 billion yen in hybrid bonds in May 2026. The scale of the new issuance, particularly against the backdrop of record-high government bond yields, will be a significant test to determine how well Japan's retail investment market can absorb debt related to AI infrastructure.

In the United States, Germany, and Japan, long-term borrowing costs have reached their highest levels in decades. Investors cite increased bond issuance by major technology companies as one reason for this growth.

Debt related to AI infrastructure accounts for up to 30% of new net issuance in some investment-grade bond indices this year. Meanwhile, long-term corporate bond yields exceeded 6% in July, offering investors higher returns, but the combination of increased supply and high initial valuations is forcing them to adopt a more selective approach.

Japan's market for corporate bonds targeted at retail investors is projected to grow to a record 2.8 trillion yen this year. However, SoftBank's planned issuance would significantly exceed in scale any similar transaction previously undertaken in this market.