SoftBank Group has launched a $10 billion US dollar-denominated and €1 billion euro-denominated senior unsecured bond offering to finance its investment in OpenAI, according to a term sheet released on Monday. The dollar notes are divided into 3.5-year, 5.5-year and 7.5-year maturities, while the euro notes carry four-year and six-year maturities.
If completed at the planned size, the offering would become the largest non-financial corporate bond deal on record in Asia Pacific and Japan, surpassing 7-Eleven’s $10.93 billion bond sale in January 2021. The transaction would also rank among the 20 largest corporate bond deals globally this year. The notes are expected to be priced on September 24 and settled on September 29, with Fitch Ratings assigning the proposed bonds a BB+ rating.
The proceeds will fund SoftBank’s $10 billion payment for the third tranche of its follow-on investment in OpenAI, expected to close on October 1, and support general corporate purposes. The bond sale will replace a previously secured $10 billion bridge loan facility for the investment. Fitch expects SoftBank’s debt to rise as it funds committed investments but anticipates the company will maintain adequate liquidity and access to capital markets.
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