SoftBank Plans to Issue $16 Billion in Subordinated Bonds to Retail Investors

SoftBank Group plans to issue subordinated bonds worth 260 billion yen ($16 billion) to retail investors, marking its return to the retail bond market just two months after its last issuance. According to Jin10, documents disclosed on Monday reveal that these bonds will have a 35-year term, with an option for the issuer to redeem them after five years. The bonds are set to be priced on June 5, with an initial five-year coupon guidance range of 4.8%-5.6%. The move comes amid increasing demand for funds related to artificial intelligence investments. Previously, SoftBank reduced a $10 billion margin loan plan secured by its OpenAI holdings, highlighting the growing pressure on its financing situation. SoftBank's investment in OpenAI has exceeded $60 billion, facing substantial financing needs related to AI infrastructure spending and other investments. Measured by credit default swaps (CDS), SoftBank's credit risk remains among the highest for Japanese companies, having widened by approximately 70 basis points since 2026.