SoftBank takes orders for US$10 billion in bonds to fund OpenAI investment, term sheet shows

SoftBank Group Corp is taking investor orders for a US$10 billion (HK$78 billion) dollar-denominated bond deal to help fund its OpenAI investments, according to a term sheet reviewed by Reuters on Wednesday.

The Japanese conglomerate is aiming to raise US$1 billion in a 3-1/2-year bond, US$4.5 billion in a 5-1/2-year bond and US$4.5 billion in a 7-1/2-year bond deal, the term sheet showed.

Potential investors have been told the price guidance for the 3-1/2-year bond is 8.75 percent to 8.875 percent, the 5-1/2-year bond is 9.375 percent to 9.5 percent and the 7-1/2-year bond is 9.75 percent to 9.875 percent, according to the term sheet.

If completed at US$10 billion, the deal would be the largest high-yield bond sale on record by an Asia-Pacific and Japan issuer, topping SoftBank's own US$7.35 billion deal in 2021, according to LSEG data.

It would also rank the third-largest global high-yield bond deals on record, LSEG data showed.

The bonds are expected to be rated BB+ by S&P and Fitch. Books close at noon New York time on Wednesday with settlement expected on September 29, the term sheet showed.

SoftBank did not immediately respond to a request for comment.

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