SoftBank Group is preparing a record ¥1 trillion ($6.3 billion) retail bond offering in Japan as it increases funding for artificial intelligence investments, including its growing financial commitments to OpenAI. The seven-year bonds would be the largest retail corporate bond issue by a Japanese company.

The planned sale comes as SoftBank faces substantial funding needs across its AI portfolio. The company has committed an additional $30 billion to OpenAI, with $20 billion already funded in April and July and another $10 billion scheduled for October. In March, SoftBank also arranged a $40 billion bridge facility to support the OpenAI investment and other corporate needs. The bond offering would add another financing channel at a time when the group is juggling multiple large commitments across startups, infrastructure and acquisitions.

Funding the AI push

The new bonds are expected to carry an indicative coupon of 4.3% to 4.9%. Pricing is scheduled for September 4, followed by an offering period from September 7 through September 16. The bonds are expected to be issued on September 17 and mature in September 2033.

SoftBank has said it plans to refinance its bridge financing through a combination of asset-backed financing, asset sales and debt issuance. Its latest annual report also identifies AI investments and major acquisitions as key funding priorities.

The company is also expanding its AI infrastructure strategy. SoftBank is involved in large-scale data center projects in the United States and Europe, while also pursuing acquisitions such as ABB’s robotics business.

Higher funding costs draw scrutiny

The record retail issuance underscores the scale of SoftBank’s AI ambitions, but it also brings greater attention to borrowing costs and balance-sheet risk. The proposed coupon is well above the 3.98% yield on SoftBank’s seven-year retail bonds issued last year, which makes the new sale notable in Japan’s retail corporate bond market as investors weigh the cost of funding against the company’s expanding investment plans.

SoftBank’s strategy increasingly depends on turning the value of holdings such as Arm and its OpenAI stake into financing capacity. The company says it will prioritize financial discipline while continuing to support large-scale investments.

The bond sale would give SoftBank another major funding source as it seeks to capitalize on the rapid expansion of AI infrastructure and OpenAI’s growth.