SoftBank sold $11.1 billion of dollar-denominated senior notes and €1 billion of euro notes this week to finance the final $10 billion tranche of its $30 billion commitment to OpenAI, paying yields that reach 9.75% on the longest dollar maturity.
The tranches and the price
The dollar issuance splits across three buckets: $1 billion due in three and a half years at 8.625%, $4.5 billion due in five and a half years at 9.25%, and $4.5 billion due in seven and a half years at 9.75%. The euro side comprises two €500 million tranches, maturing in four and six years at 7.125% and 8% respectively. The spread between the shortest and longest dollar legs is 112.5 basis points; the euro curve is 87.5 basis points steeper.
Retail yen deal came first
Earlier this month SoftBank raised 1 trillion yen, roughly $6.32 billion, from Japanese retail investors. That sale preceded the dollar and euro offering and brought total fresh borrowing to about $17.4 billion across three currencies in a matter of weeks. The company has not disclosed whether the yen proceeds are also earmarked for OpenAI or for general AI-related capital needs.
Debt pile grows with AI exposure
The new bonds add to a balance sheet already stretched by Vision Fund mark-downs and a pivot toward direct AI bets. SoftBank’s strategy now centers on concentrating capital in a handful of large positions, OpenAI chief among them, rather than the broader venture portfolio model of the past decade. The yield levels suggest investors demand a meaningful premium for that concentration risk.
What to watch next
The OpenAI commitment closes once this $10 billion lands, but SoftBank has signaled continued appetite for AI infrastructure and chip investments. Whether the next round is funded by more debt, asset sales, or equity will indicate how sustainable the current leverage trajectory is.