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SoftBank Record Junk Bond Sale Raises Stakes For CEO Son AI Bet
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Moneycontrol•14-10-2026, 07:54
SoftBank Record Junk Bond Sale Raises Stakes For CEO Son AI Bet
- •SoftBank issued an 11 billion dollar junk-bond offering promising its highest-ever yields to retain assets rather than selling them.
- •CEO Masayoshi Son has made massive investments in AI, including 64.6 billion dollars backing OpenAI.
- •Analysts and investors are scrutinizing the high concentration of SoftBank portfolio assets and whether AI payouts will arrive soon enough.
- •SoftBank is paying record coupon yields of up to 9.75 percent on bonds maturing in 2034, reflecting higher investor risk perception.
- •While past bets like Alibaba and Arm generated huge successes, other investments like WeWork resulted in major bankruptcies.
Key Questions Answered
SoftBank is paying its highest-ever coupon of 9.75% on a bond issued last month that matures in 2034.
SoftBank has made total commitments reaching $64.6 billion to back ChatGPT maker OpenAI.
A senior SoftBank executive explained that the company borrowed money because it does not want to sell assets that it believes will continue rising in value.
