SoftBank will issue over $11 billion in bonds to fund its investment in OpenAI

SoftBank has begun placing $10 billion and €1 billion worth of bonds. The company will use the bulk of the proceeds for its next investment in OpenAI.

The Japanese group is required to pay $10 billion for the third stage of its additional investment in OpenAI. The deal is expected to close on October 1. To fund this amount, SoftBank had previously taken out a $10 billion short-term loan, which it will now replace with the new bonds.

If the bonds are placed at the planned volume, it would be the largest bond issuance by a non-financial company in the Asia-Pacific region and Japan. The previous record belonged to 7-Eleven, which issued $10.93 billion in bonds in 2021.

The final terms of the bonds are expected to be set on September 24, with the deal set to close on September 29. Fitch has assigned them a BB+ rating.

Source: Investing.com