SoftBank Group Corp. is seeking over $11 billion in junk bonds, according to Bloomberg, in what would be one of the largest such deals ever by a single firm outside a distressed exchange, according to Yahoo Finance.
SoftBank’s $11 Billion Junk Bond Offering Details
SoftBank’s planned $11 billion junk bond sale includes $10 billion in dollar-denominated notes across three maturities and €1 billion in euro notes, as reported by Yahoo Finance. The offering aims to fund a follow-on investment in OpenAI, which is expected to close next month. The company has already committed close to $65 billion to OpenAI, according to the same source. This bond sale would mark SoftBank’s largest single debt offering to date, surpassing its previous $15 billion in notes across currencies this year, the most of any junk-rated borrower.
The yield on SoftBank’s 2031 dollar bond rose to 8.2% this month, up from 6.7% in January, reflecting heightened market concerns about the AI sector’s trajectory. The cost to insure its debt against default also hit a three-year high, as fears of an AI development slowdown intensified following warnings from figures like Anthropic’s Dario Amodei. SoftBank’s BB+ credit rating from S&P is its highest speculative grade, lagging behind the AA+ ratings of Alphabet and Amazon, the top corporate bond issuers of 2026.
SoftBank Seeks $11 Billion in What Would Be a
Debt Strategy and AI Investment Context
SoftBank’s bond sale is part of a broader debt-raising strategy to finance its AI ambitions. In recent weeks, the company closed a $5 billion increase to its Arm-backed margin loan, raising the facility to $25 billion, and added $450 million to an existing credit line, now totaling $6.5 billion. Apollo Global Management is also discussing a $3.6 billion to $9 billion loan to SoftBank, on top of an $11.87 billion loan secured this month. These moves underscore the firm’s aggressive push into AI, despite growing skepticism about the technology’s long-term viability.
SoftBank’s Masayoshi Son has downplayed concerns about AI investments, stating in a recent report that he expects AI-related industries to account for 20% of global output by 2040, equivalent to $46 trillion. However, the company’s debt-fueled bets have drawn scrutiny, with Goldman Sachs noting that global AI-related debt issuance reached $575 billion in 2026. Analysts warn that the surge in AI financing could create a market hangover if the sector fails to deliver on its promises, as investors grapple with the risks of overleveraging.
Market Reactions and Broader Implications
SoftBank Starts Jumbo High-Yield Bond Sale to Finance AI
SoftBank’s bond sale highlights the growing tension between AI’s potential and the financial risks of its rapid development. While the firm’s debt metrics remain among the highest for a non-distressed issuer, its ability to attract investors suggests confidence in its AI strategy. However, the spike in default insurance costs and the broader market’s unease about AI’s scalability could temper this optimism. For now, SoftBank’s gamble hinges on its capacity to translate massive debt into sustained returns, a challenge that could redefine the future of corporate finance in the AI era.
The deal also underscores the broader shift in capital markets, where AI-driven investments are reshaping traditional financing models. With SoftBank at the forefront, the question remains whether its $11 billion bet will yield transformative returns—or become a cautionary tale of overleveraged ambition.
SoftBank has sold almost $15 billion of notes across currencies this year, the most of any junk-rated borrower. The company’s 2031 dollar bond yield climbed to 8.2% this month from as low as 6.7% in January. The cost to insure its debt against default hit a three-year high as concerns about an AI slowdown intensified, after Anthropic’s Dario Amodei and other AI leaders called for slowing model development. SoftBank carries a BB+ rating from S&P, its highest speculative grade, against AA+ and AA for Alphabet and Amazon, the two largest corporate bond issuers of 2026.
Bloomberg reported that SoftBank, one of the world’s biggest investors in AI, started marketing the multi-part deal, with price talk underway for the dollar portion. The group aims to raise the equivalent of more than $11 billion in the offering that includes a $10 billion dollar part and a €1 billion ($1.1 billion) euro portion. The offering is the latest in a flurry of activity by SoftBank in debt markets this year to help fund commitments nearing $65 billion to ChatGPT creator OpenAI, as well as more M&A in the sector. The moves have put the Japanese investment firm at the epicenter of debt-fueled bets on artificial intelligence, at a time when the promise of the technology has riveted global markets even as safety concerns about the industry have flared.
SoftBank isn’t alone in storming markets for funding, with global AI-related debt issuance already topping $575 billion in 2026, according to a recent report by Goldman Sachs Group Inc. credit strategists. Son has downplayed concerns about investments in AI infrastructure, and said earlier this year he expects AI-related industries to account for 20% of global output by 2040, equivalent to $46 trillion. The flood of AI funding in global financial markets, however, has made some bond investors uneasy. Their concern is that the ever-growing pile of the debt threatens to cause a hangover for markets if the technology fails to pay off for the firms that are making the biggest investments.