SoftBank raised $11.1 billion in high-yield bonds in late September, the largest junk bond sale in corporate history. Founder Masayoshi Son is borrowing at yields near 10% to fund the company's expanding bet on OpenAI. The proceeds push SoftBank's cumulative OpenAI commitment toward $65 billion.
SoftBank raised $11.1 billion in high-yield bonds in late September, the largest junk bond sale in corporate history. The deal eclipses Numericable's roughly $10 billion issuance from 2014, which had held the record since. Founder and CEO Masayoshi Son is borrowing at yields approaching 10% to bankroll the company's bet on artificial intelligence.
SoftBank prices $11.1 billion in junk bonds
The offering split across two currencies. The dollar portion totaled $10 billion in senior notes, split into a $1 billion tranche at 3.5 years priced at 8.625%, and two $4.5 billion tranches at 5.5 and 7.5 years priced at 9.25% and 9.75% respectively. The euro side added two €500 million tranches, yielding 7.125% over four years and 8% over six years, bringing the total euro portion to €1 billion.
Despite the steep pricing, the deal was reportedly oversubscribed, meaning more money wanted in than SoftBank was willing to take.
Proceeds fund SoftBank's stake in OpenAI
The bond proceeds are being channeled primarily toward SoftBank's commitment to OpenAI, the company behind ChatGPT. SoftBank's cumulative investment in OpenAI is expected to reach approximately $65 billion, which would give the company about 13% ownership when the deal is expected to close around early October 2026. This issuance represents the third tranche of financing toward that commitment.
Earlier in the year, SoftBank secured around $40 billion in bridge loans to get the AI investment engine running. SoftBank has also tapped Japanese retail investors through yen-denominated bond offerings throughout 2026.
Debt climbs as the AI bet grows
Son has framed the wager as a shot at building a leading platform for what he calls artificial superintelligence, the theoretical stage beyond today's generative AI. His early $20 million bet on Alibaba returned more than $100 billion, a precedent he can point to.
But SoftBank is piling on debt at yields approaching 10% during a period of elevated interest rates, and its leverage ratios are climbing as a result. Putting $65 billion into a single company, even one as dominant as OpenAI, concentrates the risk in a sector that has yet to prove its spending translates into matching returns.
Source: Crypto Briefing
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