Home SoftBank Plans $1.6B Bond Raise To Boost AI Investments

SoftBank Plans $1.6B Bond Raise To Boost AI Investments

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SoftBank Plans $1.6B Bond Raise To Boost AI Investments
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Japanese investment giant SoftBank Group is once again turning to the bond market to get new funding for its growing artificial intelligence goals.

The company plans to raise about ¥260 billion, or roughly $1.6 billion, through subordinated bonds mainly aimed at retail investors. This offering comes just two months after SoftBank finished another big retail bond sale.

According to company documents, the bonds will have a 35-year term, with an option for SoftBank to buy them back after five years. Pricing is expected on June 5, with initial interest rates between 4.8% and 5.8% as SoftBank’s growing need for money drives its aggressive expansion of AI-related investments. The company has invested heavily in OpenAI, with total exposure reportedly over $60 billion.

SoftBank’s funding needs have grown rapidly alongside rising global spending on AI infrastructure, data centres, and advanced computing systems. Earlier reports also said the company cut plans for a large margin loan linked to its OpenAI stake, raising new questions about financial pressure.

Despite those worries, investor demand for AI-linked bond offerings remains strong worldwide. Analysts say retail investors continue to show interest in SoftBank’s debt products because they offer higher returns than Japanese government bonds.

The company recently sold ¥418 billion worth of retail bonds in April, alongside billions of dollars in institutional bonds denominated in US dollars and euros.

SoftBank founder Masayoshi Son has repeatedly emphasized that artificial intelligence will become one of the company’s central long-term growth themes.

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Written by
Kapil Rajyaguru -

Kapil Rajyaguru is a news editor at 3.0 TV with over 15 years of professional writing experience and more than four years dedicated to the cryptoverse.

An engineer by education and a writer by passion, Kapil brings a rare mix of technical insight and storytelling finesse. A firm believer that cryptocurrencies, blockchain and AI are the building blocks of the future, he crafts in-depth news and analysis to educate, empower and prepare the masses for the next frontier of Web3.

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