Key insights
- SoftBank plans its first Euro bond sale to fund AI expansion, including potential investment in OpenAI. While the bond sale itself has limited direct impact, SoftBank's increased focus on AI and potential large-scale borrowing could indirectly influence sentiment in the technology sector, particularly if it signals aggressive investment strategies.
Investing.com -- SoftBank Corp., the listed unit of SoftBank Group Corp., has mandated banks to arrange investor calls for its first euro-denominated bond sale, according to a Wednesday report by Bloomberg.
The telecommunications and financial services company has appointed JPMorgan Chase & Co., BNP Paribas SA, Citigroup Inc., and Mizuho to organize investor meetings in Asia and Europe starting Wednesday. The potential offering consists of benchmark-sized, fixed-rate senior unsecured euro tranches with six- and 10-year maturities.
The planned sale comes as SoftBank Group founder Masayoshi Son expands the conglomerate’s presence in artificial intelligence. The parent company is exploring raising up to $40 billion in the loan market, primarily to finance its investment in OpenAI, which would mark its largest dollar-denominated borrowing.
SoftBank Corp., which listed in 2018 as the mobile arm of SoftBank Group and now includes financial services and AI operations, sold its first US high-grade bond last year. The $1 billion offering of five- and 10-year debt attracted demand exceeding seven times the transaction size and priced inside initial guidance.
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