SoftBank Group is tapping global bond markets for $10 billion and €1 billion just days before another $10 billion investment in OpenAI is scheduled to close.
The Japanese investment group has launched dollar- and euro-denominated senior unsecured notes across five maturities, according to a term sheet. The dollar offering is divided into 3.5-year, 5.5-year and 7.5-year notes, while the euro portion consists of four-year and six-year bonds. The issues are expected to price on September 24 and settle on September 29.
That timetable puts the financing immediately ahead of SoftBank’s next OpenAI payment.
SoftBank committed in February to invest an additional $30 billion in OpenAI through SoftBank Vision Fund 2, divided into three $10 billion tranches. The first closed on April 1 and the second was scheduled for July 1, while the third is due on October 1, 2026. SoftBank said the investment was agreed at a $730 billion pre-money valuation.
The new bond proceeds are intended to finance that third tranche as well as general corporate purposes. The term sheet also says the offering will replace $10 billion of bridge financing previously arranged for the OpenAI investment.
That financing shift is important. Bridge loans are designed to provide capital quickly before a company secures more permanent financing. By issuing bonds with maturities extending as far as 7.5 years, SoftBank is moving part of the funding behind its OpenAI commitment into longer-dated debt rather than leaving it dependent on short-term borrowing.
SoftBank had already indicated that this was the plan. When announcing the OpenAI investment in February, the company said it expected to fund the transaction initially with bridge loans and other arrangements before replacing them over time with existing assets and other financing measures.
Citigroup and JPMorgan are serving as lead bookrunners for the new notes, according to the term sheet. Final coupon levels have not yet been disclosed.
That makes September 24 the next important point in the transaction. The final pricing will establish how much SoftBank must pay investors to secure longer-term capital for one of its largest AI commitments.
If the timetable holds, the bonds will settle on September 29, followed two days later by SoftBank’s scheduled $10 billion third-tranche investment in OpenAI.
