SoftBank Group Corp. is preparing to raise the equivalent of more than $11 billion through a dual-currency high-yield bond offering earmarked for its investment in OpenAI, in what would rank among the largest junk bond sales on record, according to people familiar with the matter cited by Bloomberg.
Key points
- SoftBank seeks to issue $10 billion in dollar-denominated bonds and €1 billion in euro-denominated bonds.
- Proceeds are designated for the conglomerate’s stake in OpenAI.
- The combined offering would exceed $11 billion equivalent, placing it among the largest high-yield deals ever.
- Reuters has confirmed the Bloomberg reporting, citing the same unnamed sources.
- Previous large tech junk bond issuances have typically funded acquisitions or refinancings, not direct equity stakes in private AI labs.
Scale and structure of the financing
The proposed issuance comprises a $10 billion dollar tranche and a €1 billion euro tranche, according to the Bloomberg report. At current exchange rates the euro portion adds roughly $1.1 billion, bringing the total above $11 billion. If completed, the deal would sit alongside the largest high-yield offerings in market history, a tier normally occupied by acquisition financing or balance-sheet refinancings rather than a single equity commitment to a private artificial intelligence company.
SoftBank has built its OpenAI position through both the Vision Fund and direct investments. The decision to fund the latest increment with leveraged debt rather than balance-sheet cash or equity issuance transfers the cost of carry to bondholders and locks in a fixed coupon schedule while the underlying asset remains illiquid and unpriced by public markets.
Market context and precedent
High-yield investors have absorbed a growing volume of technology-linked issuance since 2023, but the proceeds have overwhelmingly gone to fund buyouts, refinance existing debt, or finance capital expenditure at rated issuers. A dedicated junk bond sale for a minority stake in a loss-making foundation-model provider represents a distinct credit profile: the collateral is an unlisted equity interest whose valuation depends on future funding rounds and an unresolved path to profitability.
The Bloomberg sources did not disclose the expected coupon, maturity profile, or covenant package. Those terms will determine whether the pricing reflects a technology growth premium or a genuine distressed credit spread. The report also did not state whether the bonds will be issued at the SoftBank Group level or through a special-purpose vehicle ring-fencing the OpenAI shares.
Implications for AI capital formation
The transaction signals that leveraged finance markets are willing to underwrite frontier AI exposure at scale, effectively extending the funding runway for model development beyond venture capital and sovereign wealth channels. Whether the structure becomes a template depends on the reception of this first tranche — oversubscription would encourage imitators, while a wide spread or weak aftermarket performance would raise the cost of replication.
SoftBank has not announced a launch timetable. The company and OpenAI declined to comment on the Bloomberg report.
