SoftBank offers over $11B in bonds to fund OpenAI investment

The bond offering comprises five tranches with maturities ranging from 3.5 to 7.5 years

Japan's SoftBank Group launched an offering of more than $11 billion in senior unsecured bonds, primarily to finance its substantial investments in artificial intelligence (AI) company OpenAI, alongside certain general corporate purposes.

According to a term sheet released on Monday, the dollar-denominated bonds, totaling $10 billion, are divided into three tranches with maturities of 3.5, 5.5 and 7.5 years. The euro-denominated bonds, totaling €1 billion, are split into two tranches with maturities of four and six years.

Proceeds from the offering will be used to fund a $10 billion payment representing the third tranche of SoftBank's additional investment in OpenAI. The strategic transaction is expected to formally close on Oct. 1, Reuters reported.

The move underscores SoftBank's reliance on debt markets to meet its substantial financial commitments to AI investments, while enhancing its flexibility in managing an investment portfolio focused on capturing opportunities in the technology sector.