SoftBank draws $20B-plus in early bids for jumbo junk bond tied to OpenAI

What's being sold and why it matters

SoftBank's latest junk bond push has drawn over $20 billion in early feelers as investors chase what could be record yields if pricing lands near the talk. These indications are not firm orders, but they set the tone ahead of an expected Thursday pricing.

A SoftBank spokesperson said the launch includes $10 billion in dollars and €1 billion in euros, calling demand "substantial," and added: "Anything else on deal size is pure speculation at this point and we have no plans to upsize the deal." People familiar with the deal said there's no formal cap and final decisions aren't set. The offering is likely to be pitched as a way to finance the company's OpenAI investments.

What yields are being floated

Banks have been testing investor appetite across several maturities. Early discussions included:

• Dollars: about 9% to low 9% for 3.5 years, mid 9% for 5.5 years, and high 9% to roughly 10% for 7.5 years
• Euros: mid to high 7% for 4 years, and around the mid 8% area for 6 years

If bonds print near those marks, they would represent record yields at those tenors in their respective currencies. The deal has not yet moved into initial price guidance, which typically comes closer to official pricing and can still shift. SoftBank held investor calls Monday and is continuing them Tuesday.

On the syndicate: Citigroup is serving as the top bookrunner and one of the global coordinators on the dollar piece, working with Goldman Sachs, JPMorgan and Morgan Stanley. JPMorgan is running the euro book and is also a joint global coordinator with Goldman Sachs and Deutsche Bank. Spokespeople for Citi, Goldman Sachs, JPMorgan and Deutsche Bank offered no comment, while Morgan Stanley did not immediately reply.

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The bigger financing and market backdrop

Billionaire Masayoshi Son's group has pledged nearly $65 billion to ChatGPT creator OpenAI and other AI plays, placing it among the world's biggest AI backers. The bond sale comes amid a flurry of financing moves to expand AI firepower:

• In March, SoftBank arranged a $40 billion bridge facility to support further investment in OpenAI and has since paid down the remaining $25.9 billion.
• By the end of last week, SoftBank had nearly $21 billion of potential fresh borrowings in motion. That included lifting a margin loan secured by Arm Holdings shares by $5 billion to $25 billion and topping up an existing credit facility by $450 million to $6.5 billion.
• Apollo Global Management is in talks to boost a SoftBank loan, adding $3.6 billion for a new total of $9 billion to help finance the OpenAI investment, and SoftBank also secured an $11.87 billion loan with the same aim.
• Earlier this year, an additional $10 billion loan was arranged against SoftBank's OpenAI stake.

This year, SoftBank has issued nearly $15 billion in notes across currencies, which makes it the biggest junk-rated borrower in global bond markets in 2026, according to compiled data. Borrowing costs have been rising more broadly as inflation sticks around in major economies. SoftBank's 2031 dollar bond yield rose to 8.2% earlier this month after starting the year at 6.7% in January, reflecting wider spreads and higher Treasury yields.

Recent comments from leaders at major AI platforms, including OpenAI, urging a slowdown on safety grounds have added uncertainty, contributing to the highest cost in three years to insure SoftBank's debt against default. Investors are also watching OpenAI CEO Sam Altman's statement that the company won't stage an IPO this year, a step that would have boosted the liquidity of SoftBank's investments.

SoftBank is rated BB+ at S&P Global Ratings and Fitch Ratings, the highest speculative grade. By comparison, Alphabet is rated AA+ and Amazon AA, both above Japan's sovereign rating.

What this could mean for your money

If pricing lands where talks suggest, buyers could be staring at near double digit dollar yields and mid 8% in euros on longer pieces - punchy payouts that come with high-yield risk. The outcome is a real-time check of how much AI risk credit investors want to carry, especially with volatility up and an OpenAI IPO off the table this year. However the deal prices on Thursday, it will show where investors draw the line on funding the AI race right now.

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