SoftBank Launches $11B Bond Deal to Fund OpenAI Investment

SoftBank Group Corp. (SFTBY) launched a $10 billion dollar-denominated and €1 billion euro-denominated senior unsecured note offering on Monday, with proceeds earmarked for its OpenAI investment, according to a term sheet cited by Reuters. The combined deal exceeds $11 billion. The dollar tranche carries 3.5-, 5.5-, and 7.5-year tenors; the euro portion carries 4- and 6-year maturities. Pricing is set for September 24, with settlement on September 29. At its intended size, the offering would be the largest non-financial corporate bond deal ever from Asia Pacific and Japan, surpassing 7-Eleven's $10.93 billion raised in January 2021, per LSEG data. Proceeds will fund SoftBank's $10 billion contribution to the third tranche of its OpenAI follow-on investment, closing October 1, and cancel a $10 billion bridge loan secured for the same purpose. Fitch assigned the notes a BB+ rating. Citigroup leads the dollar bookrunners; JPMorgan leads the euro notes.