SoftBank Issues Record $11.1B Bond Sale to Fund OpenAI Investments

SoftBank Group has issued a record-breaking $11.1 billion in high-yield bonds denominated in US dollars and euros to fund its aggressive expansion in artificial intelligence. The capital will primarily finance its pledged $64.6 billion investment in OpenAI, which is expected to bring SoftBank's equity stake to around 13%. This deal marks the largest global high-yield corporate bond issuance in history, highlighting how AI expansion is driving massive debt financing across the tech sector. However, this heavy leverage and high asset concentration in OpenAI and Arm increase SoftBank's financial vulnerability if market sentiment around AI cools. The offering includes three USD senior bond tranches totaling $10 billion with coupon rates ranging from 8.625% to 9.75%, alongside two EUR tranches totaling €1 billion with yields up to 8%. Reflecting rising default concerns after OpenAI delayed its IPO plans, SoftBank's 5-year credit default swap (CDS) spread surged past 400 basis points.