SoftBank Fires on All Fronts: SP.LINKS Bid, Hybrid Bond, and OpenAI IPO Converge in Pivotal Month

SoftBank Group navigates a defining fiscal period with a ¥260 billion hybrid bond, a bid for payment processor SP.LINKS, and a $64.6 billion OpenAI IPO commitment, while its stock more than doubles.

SoftBank Group is entering a defining stretch of its fiscal calendar, juggling a consumer payment acquisition, a ¥260 billion hybrid bond, and a blockbuster OpenAI initial public offering — all while its stock has more than doubled this year. The telecom-to-tech conglomerate has overtaken Toyota as Japan’s most valuable listed company, but the market is demanding proof that the rally is built on sustainable foundations rather than AI hype.

In the payment space, SoftBank Corp. — the group’s domestic telecom arm — has advanced to the second round of bidding for SP.LINKS Inc., a Japanese payment processor that Blackstone acquired in January 2024 for about ¥40 billion. Blackstone, which bought the business (formerly Sony Payment Services) alongside a 20% minority stake held by Sony Bank, is now targeting a sale price of roughly ¥100 billion ($625 million), effectively doubling the enterprise value in just over two years. A private-equity fund also remains on the shortlist, and final bids are expected by mid-July. Whether Sony Bank opts to sell its interest could influence the final price. The bid comes as Japan’s cashless payment penetration has climbed to 58% in 2025, from 53% a year earlier and a mere 17% in 2010, offering SoftBank Corp. clear synergies with its millions of mobile subscribers.

Yet that acquisition push is unfolding against a backdrop of aggressive debt management. On June 5, SoftBank Group will issue a 35-year hybrid bond worth ¥260 billion (around €1.7 billion), with an initial coupon range of 4.8% to 5.6%, aimed primarily at Japanese retail investors. Proceeds will refinance an existing bond that becomes callable in July 2027. This marks the second large retail-oriented bond in weeks — after a ¥418 billion sale in April — and the instrument is subordinated, allowing SoftBank to suspend interest payments under certain conditions. Rating agencies are expected to treat roughly half the volume as equity, easing the group’s leverage metrics. The final coupon will serve as a market test of credit sentiment, which has become fraught: S&P Global Ratings cut SoftBank’s outlook to negative in March 2026 (while affirming a BB+ rating), and the company’s credit default swaps have widened by about 70 basis points year-to-date, among the highest of any Japanese corporate.

The group is also actively deleveraging: on June 9, it will prepay a $669 million bond originally due in July 2026. The move signals active liability management despite the concurrent $64.6 billion commitment to OpenAI, of which $10 billion was already wired in April. SoftBank has invested $32.4 billion in the AI startup over the past fiscal year, with additional pledges bringing the total estimated stake to 13%. OpenAI is preparing a Nasdaq listing, with Goldman Sachs and Morgan Stanley leading the underwriting, and CEO Sam Altman favoring a September launch. The last private placement valued OpenAI at $852 billion, and an IPO could push the valuation past $1 trillion. Morningstar estimates that SoftBank’s OpenAI stake now represents about 26% of its total assets, while its roughly 90% holding in Arm accounts for around 40% — together totaling nearly two-thirds of the portfolio.

The market has rewarded SoftBank’s AI-centric strategy with a blistering rally: shares have advanced over 90% since the start of 2025, far outpacing Toyota’s 13% decline. However, the holding discount — the gap between the stock price and estimated net asset value — remains stubbornly high, averaging 50% over five years and widening to 55–60% early this year. A single-day drop of 6.6% in Frankfurt took the euro-listed shares to €43.91, paring a 42% gain over the prior 30 days. Deutsche Bank responded on June 2 by downgrading the stock to “Hold” while nudging its target price to ¥8,700 from ¥8,600, citing the need for caution after such a meteoric run.

The annual general meeting is scheduled for June 24. By mid-July, investors will know whether SoftBank Corp. has secured SP.LINKS — and whether the group’s domestic focus is broadening beyond AI infrastructure into consumer payments. The hybrid bond’s reception on June 5 will offer an early reading of whether the market shares SoftBank’s confidence in its ability to juggle debt, acquisitions, and a multibillion-dollar bet on OpenAI.