Bond spotlight

SoftBank: new HY deal is a leveraged bet on OpenAI

Written by Rose Choy

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SoftBank Group is marketing a major multi-currency high-yield bond transaction, with proceeds primarily intended to fund a further USD 10 billion investment in OpenAI. 

The proposed financing would add materially to SoftBank’s debt burden while deepening its exposure to OpenAI’s valuation, funding trajectory and expanding need for AI infrastructure. The transaction also marks SoftBank’s first 144A issuance, broadening its potential access to US high-yield investors. 

AFII’s analysis considers the credit, infrastructure and climate dimensions of this strategy. While SoftBank has set targets for net-zero Scope 1 and 2 emissions by FY2030 and net-zero across Scopes 1–3 by FY2050, its associated AI infrastructure plans require substantial, reliable power supply. 

In particular, the planned Ohio development is expected to be supported by significant new gas generation capacity. We explore how this concentration of financing, infrastructure and energy risk could affect SoftBank’s deleveraging plans, its reliance on OpenAI, and the credibility of its climate strategy.

About the author

Rose Choy

Rose Choy

Research Director, APAC

Based in Singapore, Rose has over 20 years’ experience in capital markets, most recently as a Senior PM at Conning Asia, and her research focuses on credit research and analysis on the energy transition in the Asia-Pacific region.

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