Japanese tech conglomerate SoftBank Group Corp. has launched the sale of $10 billion and €1 billion ($1.15 billion) in senior unsecured notes to back its ongoing investment in OpenAI.
Key Takeaways:
- Record Issuance: At ~$11.15 billion, the deal marks the largest Asia Pacific & Japan non-financial corporate bond sale on record, surpassing 7-Eleven’s $10.93B offering in 2021.
- Use of Proceeds: Funds will finance SoftBank’s $10 billion third tranche payment in OpenAI (closing October 1) and replace a temporary $10B bridge loan facility.
- Note Tranches: Dollar-denominated notes span 3.5, 5.5, and 7.5-year maturities; euro-denominated notes span 4 and 6-year maturities.
- Deal Execution: Expected to price on September 24 and settle on September 29, with Fitch assigning a BB+ rating. Citigroup and JPMorgan are leading global coordination.
A landmark debt issuance illustrating the sheer scale of global capital required to back leading AI developers! 🌐🤖