SoftBank to repay $25.9B OpenAI loan early

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SoftBank Group plans to repay the remaining $25.9 billion of a $40 billion loan it raised earlier this year to finance its investment in OpenAI, replacing the borrowing with longer-term debt.

The Japanese technology conglomerate will repay the outstanding amount on Sept. 15, about six months before the loan was due to mature in March 2027, it said in a statement on Wednesday.

SoftBank "has tried to stay ahead of that deadline. Issuing bonds pushes the maturity out by several years," said Bloomberg Intelligence analyst Kirk Boodry. "With markets concerned about leverage in general, better to get it done early and avoid any drama."

The move will ease SoftBank’s near-term repayment obligations and give the group more time to manage its liabilities, while keeping it reliant on debt markets to finance its expansion.