SoftBank Launches Multi-Billion Dollar Debt Push to Fund OpenAI Ambitions

SoftBank taps global markets with euro and hybrid bonds, exploring a record $40B loan to finance its multi-billion dollar investment in OpenAI, drawing analyst scrutiny.

SoftBank Group is tapping global capital markets with unprecedented scale, launching a series of debt offerings to fuel its massive investment in artificial intelligence. The Japanese conglomerate is simultaneously finalizing a multi-billion yen hybrid bond and preparing its first-ever euro-denominated bond, all while exploring a record-breaking loan to support its partnership with OpenAI.

The company's telecom subsidiary, SoftBank Corp., is making its euro debut with a bond split into six- and ten-year tranches. Arranged by JPMorgan, BNP Paribas, Citigroup, and Mizuho, the deal has already attracted over €4.2 billion in orders from institutional investors. This strong demand mirrors the reception for a previous dollar bond, which was seven times oversubscribed and priced below initial guidance.

Parallel to this, the parent company has set terms for a separate ¥418 billion (approximately €2.6 billion) hybrid bond aimed at Japanese retail investors. This 35-year, subordinated instrument carries a fixed annual coupon of 4.97% for the first five years. After that, the rate switches to a variable one based on the one-year Japanese government bond yield plus a spread of 3.133%. The Japan Credit Rating Agency has assigned it a BBB+ rating.

This yen issuance, with a subscription period running from April 13 to April 21 and settlement on April 22, 2026, is primarily intended to refinance existing hybrid notes maturing in June 2026. SoftBank holds the option to call the bonds from April 2031 onward. Rating agencies are set to treat 50% of the instrument's value as equity due to its optional interest deferral feature.

The capital-raising blitz is directly linked to SoftBank's deepening commitment to OpenAI. The first $10 billion tranche from the SoftBank Vision Fund 2 was transferred to the AI firm on April 1, financed via a bridge loan of equal size. Two further $10 billion payments are scheduled for July and October 2026.

To support this commitment, SoftBank Group is examining a loan of up to $40 billion, which would be the largest dollar-denominated borrowing in the conglomerate's history. This aggressive financing strategy has drawn scrutiny from credit analysts. S&P Global Ratings recently revised its outlook on SoftBank Group to negative, citing increased risks from the concentrated OpenAI exposure and the group's growing funding requirements.

The financial impact of these parallel maneuvers will become clearer in May. SoftBank Corp. is scheduled to report its full-year results for the period ending March 2026 on May 11, followed by the parent company's earnings on May 13. These reports will offer the first comprehensive look at how the debt-funded AI strategy is affecting the corporate balance sheet.