SoftBank bond sale offers yields nearing 10% as it bets the farm on OpenAI

SoftBank Group is tapping the bond market for more than $11 billion, offering investors yields that flirt with 10%. The massive debt sale, launched on September 21, is designed to fund the third $10 billion investment tranche in OpenAI, with that deal expected to close on October 1. It also covers refinancing of bridge loans SoftBank arranged earlier this year. The deal structure The offering breaks down into two currencies. There’s $10 billion in US dollar-denominated senior unsecured notes split across 3.5-year, 5.5-year, and 7.5-year maturities. On top of that, SoftBank is issuing roughly equivalent to another billion in euro-denominated notes with 4-year and 6-year terms. The dollar tranches are projected to yield between 9% and 10%. The euro tranches are expected to land in the mid-8% range. SoftBank already sold bonds earlier in 2026 with an 8.5% coupon on a 10-year tranche back in April. SoftBank carries a BB+ credit rating, which puts it squarely in speculative-grade territory — one notch below investment grade. Investor appetite is real Demand has been robust. Preliminary indications of interest topped $20 billion, nearly double the amount SoftBank is looking to raise. Ear...