SoftBank Group announced plans to issue 1 trillion yen (approximately $6.3 billion) in retail bonds, aiming to fund its expanding artificial intelligence investment strategy. This issuance will set a record as the largest retail bond offering ever by a Japanese company, nearly doubling SoftBank’s previous record of 600 billion yen from April 2025.
The seven-year bonds are expected to carry an indicative coupon range of 4.3% to 4.9%, with final pricing anticipated on September 4. Proceeds from this bond sale will be allocated to AI-related investments and the repayment of previously issued bonds, as stated by a company spokeswoman to The Wall Street Journal.
SoftBank’s bond offering coincides with NTT Finance’s issuance of 1 trillion yen in debt to institutional investors, marking it as the largest corporate bond sale by a Japanese company. This move comes amid a surge in capital-raising activities within Asia’s technology sector, as companies like Alibaba Group also seek significant funding for AI capabilities.
In recent years, retail bonds have become a crucial financing source for SoftBank, which has been the most active issuer among Japanese corporates. The company frequently engages the domestic retail market through offerings such as the “Fukuoka SoftBank Hawks Bonds,” which provide higher yields compared to traditional bank deposits.
To support its AI ambitions, SoftBank has been monetizing its portfolio, including the sale of its entire stake in Nvidia and securing financing through shares in chip designer Arm. Additionally, the company has divested holdings in T-Mobile. On the same day of the announcement, SoftBank’s shares fell, reflecting a broader decline in Asian tech stocks, with the Nikkei 225 index down 0.5%.
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