SoftBank considers $20 billion bond sale to fund OpenAI investment

SoftBank Group is considering a bond offering of between $10 billion and $20 billion to refinance a $40 billion bridge loan used to fund its investment in OpenAI. The conglomerate, led by Masayoshi Son, aims to invest more than $65 billion in OpenAI by October, marking one of the largest private artificial intelligence investments in history.

The potential offering could be denominated in dollars and euros and may occur as early as September. If the sale reaches the upper end of its target range, it would represent the largest deal from an Asian company this year. SoftBank is also exploring a 144A format for the notes to allow sales to institutional investors in the United States.

In addition to international efforts, SoftBank is planning a ¥1 trillion retail bond sale in Japan for early next month. The company is also managing a $10 billion margin loan against its OpenAI stake, which includes covenants that could require cash postings or early repayment.