SoftBank Group plans to issue up to 260 billion yen in retail subordinated bonds to fund AI investments

SoftBank Group plans to issue another $16 billion (approximately 2,600 billion yen) in subordinated bonds to retail investors, just about two months after the last similar transaction.

Documents disclosed on Monday indicate that the bonds will have a term of 35 years, with an option to redeem for the issuer after 5 years. The pricing date is June 5th, with the indicative interest rate range being 4.8% to 5.6%.

Behind this funding pace is SoftBank's rapidly expanding capital exposure in the field of artificial intelligence. The company's cumulative investment in OpenAI has surpassed $60 billion, combined with multi-line expenditures such as AI infrastructure construction, the financial gap is quickly widening.

It is worth noting that SoftBank had previously planned to secure a loan of $10 billion using its stake in OpenAI as collateral, but the scale was reduced by about 40%. This detail has been regarded by the market as a signal that its financing conditions are tightening.

At the same time, OpenAI is advancing towards a potential initial public offering. If the IPO lands smoothly, SoftBank's equity will gain a clearer valuation anchor and liquidity outlet, but until then, the collateral value of this asset still remains uncertain.

The intense issuance of retail subordinated debt not only reflects SoftBank's firm betting on the long-term prospects of AI but also highlights a practical issue—whether financing channels can keep up with the pace of expansion when the scale of investment continues to grow.