SoftBank has just completed an $11 billion junk bond issuance, one of the largest debt fundraising deals in history by a private enterprise. This capital was raised to fund an investment in OpenAI. Notably, the most surprising factor was not the deal’s size but the yield accepted by the market.
According to Reuters, the financing package structure comprises $10 billion and 1 billion euros (equivalent to approximately $1.15 billion). The agreement specifies that the proceeds will fund an investment in OpenAI at a valuation directly recorded in the quotation. The deal was priced during the week of September 24, ensuring timely progress for the payment expected on October 1.
Despite investor concerns regarding OpenAI’s IPO roadmap and data center plans, as well as the postponed listing of SB Energy, the issuance was still set at a record yield. According to Bloomberg, the entire risk of this transaction was successfully absorbed by the $23 trillion U.S. junk bond market.
Details of SoftBank’s $65 Billion Debt and Fundraising Method
According to a Bloomberg report, a portion of the raised capital will fund the next transaction with OpenAI, expected to close next month. As a result, Mr. Masayoshi Son’s total investment commitment to the company has increased to approximately $65 billion. It should be noted that this figure is an aggregate of cumulative commitments over time, not reflecting the size of a single ownership position.
SoftBank’s fundraising strategy also has several notable aspects. This model helps the company secure cash without diluting shareholder equity or being forced to divest profitable investments. While most financial institutions typically limit the use of this method to avoid increasing debt pressure on their balance sheets, SoftBank still embraces financial leverage to optimize the speed of disbursement for strategic objectives.
The financial market context further highlights the nature of this agreement. Due to geopolitical uncertainties prompting investors to demand higher risk compensation, the volume of junk bond issuance in Asia through August 2026 has decreased by approximately 18% compared to the same period. In its most recent fundraising in 2024, SoftBank successfully raised $4.5 billion with interest rate spreads ranging from 375 to 450 basis points above the base rate.
Returning to the market after just two years, the conglomerate has more than doubled its fundraising size, accompanied by significantly higher yields. This clearly reflects how the market prices risk for investments during the AI industry’s boom phase.
A risk to note: current cash reserves only meet short-term liquidity needs. In the event that OpenAI’s IPO plans are delayed or new revenue sources do not meet expectations, the interest and principal repayment obligations for the $11 billion debt remain fixed, while the value of collateralized assets could fluctuate unfavorably.