SoftBank plans record $6.3bn retail bond sale in Japan
SoftBank plans a record 1 trillion yen retail bond sale, about $6.3bn, the largest by any issuer in Japan, to fund investment commitments to OpenAI. Analysts say banks were reluctant to take the risk, leaving the deal dependent on retail investors.
SoftBank has found a lender of last resort for its AI bet, and it is Japanese households. The group plans a record ¥1 trillion retail bond sale, about $6.3bn and the largest by any issuer in Japan, to fund its investment commitments to OpenAI.
The terms are built to be tempting. The seven-year bonds are expected to price on 4 September with an indicative coupon of 4.3% to 4.9%, and SoftBank says it expects an A rating from Japan Credit Rating Agency.
International raters see it differently. S&P has SoftBank at BB+, one notch below investment grade, having revised its outlook to stable from negative in July.
The reason...
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