SoftBank Raises $11 Billion at Record 9.75% Yield
SoftBank issued $11 billion in junk bonds to fund OpenAI deals, paying record yields of up to 9.75% amid rising market risk.
Key points
- SoftBank raised $11 billion in debt to fund its $65 billion commitment to OpenAI.
- The company paid record yields of up to 9.75% on its new dollar-denominated bonds.
- Investors placed over $30 billion in orders, allowing SoftBank to lower initial pricing.
SoftBank Group raised $11 billion in debt to fund its artificial intelligence expansion. The company paid record yields of up to 9.75% on new dollar bonds. This move makes it the largest corporate junk-bond borrower globally, according to The Japan Times.
Record Yields Define the Deal
The firm sold $1 billion of 3.5-year bonds at an 8.625% yield. It issued $4.5 billion of 5.5-year securities at 9.25%. The longest tranche of $4.5 billion carried a 9.75% yield. These rates are the highest ever for SoftBank dollar bonds.
The company also sold €1 billion in euro-denominated notes. The longer six-year tranche priced at an 8% yield. This figure represents a record for that specific currency tenor.
Strong Demand Lowers Borrowing Costs
Investors placed over $30 billion in orders for the $10 billion dollar portion. This strong interest allowed SoftBank to reduce the initial yield ranges. The final pricing remained higher than rates paid in previous deals.
Market Concerns Over AI Debt
SoftBank is funding commitments nearing $65 billion to OpenAI. Global AI-related debt issuance has topped $575 billion in 2026. Credit default swap prices rose to their highest since April 2025. Investors fear a market hangover if these technologies fail to pay off.
