SoftBank launches eleven billion dollar bond sale for OpenAI funding

SoftBank launched an $11 billion bond sale on September 23, 2024, to raise money and manage its debts. The Japanese technology company is selling bonds in five groups, with repayment periods between 3.5 and 7.5 years. Citigroup and JPMorgan are running the sale.

SoftBank needs the money partly because it has promised $30 billion to the AI company OpenAI. The next payment, due October 1, is approaching. The company originally borrowed money through short-term loans to fund this commitment and is now replacing those loans with bonds.

SoftBank's credit rating is BB+, which is below the top level. Its bonds are currently offering around 8.2% interest to buyers, up from 6.7% in January.