SoftBank is preparing to issue 6 billion yen in bonds to further raise funds for investment in AI.

SoftBank is preparing to offer 60,000 billion yen in bonds to institutional investors in Japan to support its investments in AI, including nearly $65,000 billion in OpenAI.

On July 17, 2569 at 13.11:XNUMX p.m., Bloomberg News reported that SoftBank Group Corp. is preparing to offer bonds worth approximately 60,000 billion yen, or about US$369 million, to institutional investors in Japan in July. After previously raising funds through bonds for retail investors and issuing foreign currency debt instruments.

According to Daiwa Securities, the lead underwriter, SoftBank plans to price its bonds during the week of July 27, consisting of 50,000 billion yen worth of 3-year bonds and 10,000 billion yen worth of 5-year bonds, in partnership with Nomura Securities and SMBC Nikko Securities.

This latest funding round reflects SoftBank's increasing need for capital following its continued expansion of investments in artificial intelligence (AI), most notably the announcement of a nearly $65,000 billion investment in OpenAI.

Earlier in 2569, SoftBank raised 678,000 billion yen through subordinated bonds for retail investors, and also issued debt instruments in the US and European markets last April.

However, growing concerns about the return on investment in AI have pressured semiconductor stocks, including Arm Holdings, a subsidiary of SoftBank, causing SoftBank's share price to fall from its peak in early June following reports that OpenAI's initial public offering (IPO) might be delayed.

In addition, SoftBank is considering a margin loan using its holdings in OpenAI as collateral, the target amount of which has recently been reduced to approximately $6,000 billion from the original target of $10,000 billion.

S&P Global Ratings revised SoftBank's credit rating outlook from "negative" to "stable" on July 16. Citing a stronger-than-expected financial position for the company following a significant increase in Arm's share price, the credit rating was affirmed at BB+, which remains one notch below investment grade.

refer : www.bloomberg.com

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