SoftBank bond sale offers yields nearing 10% as it bets the farm on OpenAI
The Japanese conglomerate is raising over $11 billion in high-yield debt to fund its third major tranche of OpenAI investment, and investors are lining up despite the risk premium.
SoftBank Group is tapping the bond market for more than $11 billion, offering investors yields that flirt with 10%. The massive debt sale, launched on September 21, is designed to fund the third $10 billion investment tranche in OpenAI, with that deal expected to close on October 1. It also covers refinancing of bridge loans SoftBank arranged earlier this year.
The deal structure
The offering breaks down into two currencies. There’s $10 billion in US dollar-denominated senior unsecured notes split across 3.5-year, 5.5-year, and 7.5-year maturities. On top of that, SoftBank is issuing roughly equivalent to another billion in euro-denominated notes with 4-year and 6-year terms.
The dollar tranches are projected to yield between 9% and 10%. The euro tranches are expected to land in the mid-8% range. SoftBank already sold bonds earlier in 2026 with an 8.5% coupon on a 10-year tranche back in April.
SoftBank carries a BB+ credit rating, which puts it squarely in speculative-grade territory — one notch below investment grade.
Investor appetite is real
Demand has been robust. Preliminary indications of interest topped $20 billion, nearly double the amount SoftBank is looking to raise. Early orders exceeded $8 billion before the deal was even officially launched.
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Pricing is expected around September 24, with settlement set for September 29. That tight timeline underscores the urgency — SoftBank needs the capital in hand before the October 1 OpenAI tranche deadline.
The OpenAI money pit
The $10 billion tranche closing in October is the third such installment in what has become one of the largest single-company investment commitments in tech history. SoftBank has systematically used debt markets to finance these commitments throughout 2026.
What this means for the high-yield market
At over $11 billion, this ranks among the largest high-yield corporate bond deals in recent memory. If the deal prices smoothly and performs well in secondary trading, it validates the thesis that investors will accept meaningful credit risk for near-10% yields in the current rate environment. Conversely, if spreads widen post-issuance or the bonds trade down, it sends a warning signal about the limits of investor tolerance for leverage-fueled AI bets.