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SoftBank prices record ¥1 trillion retail bond at 4.75% coupon

SoftBank prices record ¥1 trillion retail bond at 4.75% coupon

Money Moves

Record ¥1 trillion retail bond and $11.1 billion dollar-euro junk bond fund SoftBank's $64.6 billion OpenAI stake, now complete.

October 1st, 2026: Third OpenAI tranche executed

Overview

Updated Oct 6

SoftBank Group priced a ¥1 trillion retail bond on September 4, the largest ever sold in Japan, at a 4.75% coupon. On September 24 it followed with $10 billion of dollar notes and €1 billion of euro notes, a record junk-bond sale, to fund the final $10 billion tranche of its $30 billion follow-on investment in OpenAI.

That tranche closed October 1, taking SoftBank's cumulative OpenAI investment to $64.6 billion for about 13% ownership. SoftBank canceled the remaining $10 billion of its $40 billion bridge loan on September 30 after repaying all borrowings. The retail bond proceeds refinance domestic debt and partly fund the ABB robotics acquisition, which is still pending closing.

Why it matters

SoftBank is borrowing ¥1 trillion from households at double the market coupon — a new benchmark for every Japanese company and saver.

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Key Indicators

US$64.6 billion
Cumulative OpenAI investment (completed)
SoftBank completed the third $10 billion tranche on October 1, 2026, reaching this total and about 13% ownership.
US$11.1 billion
Foreign-currency bond issuance
Dollar and euro senior notes priced September 24, 2026, the largest junk-bond sale on record.
Canceled
OpenAI bridge loan status
The $40 billion bridge facility was fully repaid and canceled on September 30, 2026.

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People Involved

Masayoshi Son
Masayoshi Son
Chairman and CEO, SoftBank Group
Steering record retail borrowing and a $64.6 billion OpenAI investment
KO
Kazuma Ogino
Senior credit analyst, Nomura Securities
Lead underwriter analyst commenting on deal and market

Organizations Involved

SoftBank Group Corp.
SoftBank Group Corp.
Conglomerate and investment holding, Tokyo Stock Exchange-listed
Issuer of the 70th unsecured straight corporate bond (Fukuoka SoftBank HAWKS Bond)

Japanese tech and investment group issuing its largest-ever retail bond.
ABB Ltd
ABB Ltd
Multinational technology company
Selling its robotics division to SoftBank

Zurich-based industrial group divesting its robotics business to SoftBank.

Timeline

October 2025 October 2026

14 events Latest: October 1st, 2026 · 1 month ago Showing 8 of 14
Tap a bar to jump to that date

  1. Third OpenAI tranche executed

    Latest Deal

    SoftBank completed the $10 billion third tranche, finishing the $30 billion follow-on; cumulative OpenAI investment now $64.6 billion.

  2. Bridge loan canceled

    Funding

    SoftBank canceled the remaining $10 billion undrawn capacity of the $40 billion bridge facility.

  3. Bond settlement and issue date

    Funding

    Debt issued and proceeds available; expected settlement per the term sheet.

  4. SoftBank prices $11.1 billion bond sale

    Pricing

    Priced dollar notes at 8.625%-9.75% and euro notes at 7.125%-8.0%, according to a press release.

  5. SoftBank launches $10B dollar and €1B euro bond offering

    Funding

    Term sheet confirms the sale to fund the third OpenAI tranche and cancel the bridge loan.

  6. Bond issue date

    Funding

    Funds to refinance domestic debt and partly fund the ABB robotics acquisition.

  7. Retail offering period opens

    Funding

    Individual investors can subscribe to the ¥1 trillion bond from September 7 to September 16, 2026.

  8. SoftBank sets 4.75% coupon on ¥1 trillion bond

    Pricing

    Prices the seven-year retail bond at 4.75%, near the top of the announced range and double the market average.

  9. SoftBank announces ¥1 trillion bond plan

    Announcement

    Reveals a record retail bond with an indicative coupon range of 4.3% to 4.9%.

  10. Bloomberg reports possible dollar and euro bond sale

    Funding

    SoftBank discussed a $10-20 billion dollar and euro bond sale to help refinance a $40 billion bridge loan tied to its OpenAI investment, Bloomberg reported.

  11. S&P revises SoftBank outlook to stable

    Rating

    S&P affirms BB+ rating and shifts outlook from negative to stable on improved financial ratios.

  12. SoftBank raises ¥260 billion more

    Funding

    Second retail bond sale of the year.

  13. SoftBank raises ¥418 billion in retail bonds

    Funding

    First retail bond sale of the year, per The Japan Times.

  14. ABB and SoftBank agree robotics sale

    Deal

    ABB and SoftBank sign a $5.375 billion agreement for SoftBank to buy ABB's robotics business.

Scenarios

1

SoftBank closes ABB robotics purchase on schedule

Likely Resolves by End of 2026

Discussed by: Startup Fortune and company guidance

SoftBank and ABB signed a $5.375 billion agreement in October 2025 and target closing in mid-to-late 2026, subject to regulatory approvals. Completion would put roughly 7,000 employees and $2.3 billion of annual revenue under SoftBank, and spend the bond proceeds officially earmarked for the deal.

2

More retail debt with OpenAI named in proceeds

Possible Resolves by Q2 2027

Discussed by: The Japan Times, FourWeekMBA

August coverage framed the sale as funding SoftBank's OpenAI commitments, which exceed $60 billion, and AI data centers. The official filing names only domestic bond redemption and the ABB acquisition. If capital needs persist, SoftBank's 2026 cadence suggests it returns to the retail market — and the stated use of proceeds could name AI directly.

3

Retail demand falls short of the ¥1 trillion target

Unlikely Resolves by Oct 31, 2026

Discussed by: Market commentary; Nomura's Kazuma Ogino

The deal is aimed mainly at individual investors in a country where bank deposits are still the default. If the target is not met during the September 7–16 offering period, the underwriting syndicate — led by Nomura, Daiwa, SMBC Nikko and Mizuho — holds the balance, and SoftBank books a smaller final tap. The 4.75% coupon is designed to make that unlikely.

4

SoftBank sells dollar and euro bonds to refinance OpenAI bridge loan

Possible Resolves by End of 2026

Discussed by: Bloomberg via Startup Fortune

Bloomberg reported in late August that SoftBank talked with banks about a possible $10-20 billion dollar and euro bond sale to refinance a $40 billion bridge loan tied to its OpenAI investment. The third $10 billion OpenAI tranche is due October 1, 2026. A dollar or euro deal would give SoftBank a second funding track beyond the ¥1 trillion retail bond.

Historical Context

3 moments from history that rhyme with this story — and how they unfolded.

July 2016

SoftBank's Arm acquisition (2016)

SoftBank agreed to buy UK chip designer Arm for about $32 billion, its largest deal at the time. Son borrowed heavily at the parent level to fund it, betting that mobile chip designs would power the next computing boom.

Then

The deal closed in September 2016 and loaded the parent with debt. SoftBank later repaid it by selling stakes, including part of Arm in its 2023 IPO.

Now

Arm became central to SoftBank's AI story and the group's main source of cash.

Why this matters now

The ABB robotics purchase follows the same playbook: a large acquisition funded by parent-level debt — here including the ¥1 trillion retail bond — with assets expected to be monetized later.

2021–2024

Rakuten's retail bond push (2021–2024)

Rakuten, rated below investment grade, sold waves of retail bonds at coupons roughly double what top-rated issuers paid, to fund Rakuten Mobile's network buildout. The bonds drew household savings hungry for yield during the zero-rate era.

Then

Rakuten raised hundreds of billions of yen from retail investors and completed its network rollout, though the mobile business burned cash for years.

Now

It proved Japanese households will buy junk-rated corporate bonds at a yield premium.

Why this matters now

SoftBank, also rated one notch below investment grade, is now running the same play at record scale with a ¥1 trillion retail bond.

1995–2026

Japan's zero-rate era ends (1995–2026)

After the 1990s asset bust, Japan's 10-year government bond yield stayed below 3% for roughly three decades, hitting zero and then negative territory after 2016. Household savers earned almost nothing on deposits.

Then

In 2026 the 10-year JGB yield crossed 3% for the first time in about 30 years, and yen retail corporate bond issuance hit a record ¥2.88 trillion by early September.

Now

Higher yields are pulling savings out of deposits and into corporate debt.

Why this matters now

Rising yields are what let SoftBank price a 4.75% retail coupon and what is drawing households into corporate bonds. The deal is a direct product of this regime change.

Sources

(14)
+8
SoftBank Group Corp. Nikkei Asia Bloomberg FourWeekMBA Startup Fortune Briefs.co The Japan Times TechGolly Japan IR Reuters Ad-hoc-news SoftBank Group Corp. SoftBank Group Corp. The Japan Times