SoftBank has issued 1 trillion yen in retail bonds at a 4.75% interest rate, in response to rising interest rates in Japan.

SoftBank Group set the interest rate on its 7-year retail bonds at 4.75% for a 1 trillion yen fundraising effort amid soaring Japanese bond yields.

On September 4, 2026, at 7:41 AM, Bloomberg News reported that SoftBank Group set the interest rate for its 1 trillion yen (approximately $6.3 billion) retail bond issue at 4.75% amid rising interest rates in Japan. This has increased the attractiveness of bond investments and may encourage Japanese companies to raise more capital from retail investors.

The bonds have a 7-year maturity and a fixed interest rate of 4.75%, which is relatively high within the 4.3-4.9% range that SoftBank announced in August.

These interest rates are also significantly higher than the average rate of yen-denominated corporate bonds for retail investors issued in Japan this year, which is around 2.3%, according to data compiled by Bloomberg.

This bond issuance comes at a time when the yield on 10-year Japanese government bonds has surged above 3% for the first time in approximately 30 years, making bonds more attractive to Japanese households, who historically tend to keep most of their financial assets in bank deposits.

Kazuma Ogino, a senior credit analyst at Nomura Securities, believes that both the high yield and the sheer size of the bond issuance, totaling 1 trillion yen, could attract new retail investors to the market.

For investors holding bonds to maturity, price volatility along the way will have less impact, while they can benefit from higher returns. This is a positive factor for the bond market for retail investors.

Japan's retail bond market is expanding rapidly, with the value of yen-denominated corporate bonds issued to retail investors from the beginning of the year until September 4th reaching 2.88 trillion yen, including a 1 trillion yen SoftBank deal, exceeding the total issuance for the entire year of all previous years.

This growth comes at a time when Japanese companies have increased demand for capital, both for mergers and acquisitions (M&A) and growth investments.

Ogino stated that relying heavily on issuing bonds to large institutional investors could put pressure on bond yield spreads. Turning to raising funds from retail investors therefore diversifies funding sources and reduces such pressure.

This trend could benefit both companies seeking to expand their fundraising channels and retail investors looking for higher returns, while also helping to broaden Japan's retail bond market base in a rising interest rate environment.

Reference: www.bloomberg.com

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