SoftBank Group Issues $40 Billion in Foreign Bonds to Bolster Liquidity and AI Investments

A Strategic Move to Raise Capital Amid Shifting Global Sentiment

SoftBank Group (SBG), one of Japan’s most influential tech investment firms, has announced its return to international debt markets with the issuance of approximately ¥600 billion (about \$4 billion USD) in foreign-currency-denominated bonds. This marks its first foreign bond issuance in a year and signals renewed efforts to manage debt maturity, secure liquidity, and fund further investments—particularly in the field of artificial intelligence (AI).

The company plans to issue a total of \$2.2 billion USD and €1.7 billion EUR in bonds. The U.S. dollar-denominated debt will span four maturities: 3.75 years at a 6.5% yield (\$500 million), 5.5 years at 6.875% (\$600 million), 7 years at 7.25% (\$600 million), and 10 years at 7.5% (\$500 million). On the euro side, three bonds will be issued: 4.25 years at 5.25% (€600 million), 6 years at 5.875% (€600 million), and 8 years at 6.375% (€500 million).

SoftBank states the funds will be used to redeem existing foreign debt, repay short-term borrowings, pursue new investments, and enhance cash reserves. The company will market the bonds to institutional investors across Europe and Asia, excluding Japan and the United States. The payment date is set for July 10. The bonds have received a BB+ rating from S\&P Global Ratings, reflecting their speculative grade status but also signaling relatively high investor interest. Major global institutions including Deutsche Bank, JPMorgan, Barclays, and HSBC are serving as joint global coordinators.

This move follows a 2021 issuance of ¥810 billion—SoftBank’s largest ever—and a ¥300 billion issuance earlier in 2024. With AI at the center of its investment strategy, SoftBank is rapidly reallocating capital into high-growth, tech-forward ventures.

What Undercode Say:

SoftBank’s latest foreign bond issuance isn’t just a debt maneuver—it’s a clear message to the market. By tapping into global capital, the company demonstrates confidence in its investment roadmap and long-term vision, despite lingering concerns about its debt-heavy structure.

The yields offered are notably high for a company of SoftBank’s stature. This suggests the firm is still seen as a riskier bet, a legacy of its past aggressive investment style and the challenges faced by its Vision Fund. Still, by locking in funding across staggered maturities and currencies, SoftBank is mitigating refinancing risk and exchange rate volatility, which are key concerns for any globally exposed portfolio.

What’s especially significant is the AI angle. SoftBank is doubling down on artificial intelligence investments, following a string of public statements and financial shifts toward this space. The new funding will likely be funneled into high-potential AI startups or related infrastructure, aligning with Masayoshi Son’s long-term vision of making SoftBank a tech enabler rather than just an investment holding.

The choice of joint global coordinators—top-tier international banks—also reflects a deliberate pivot to restore global investor trust. And by issuing outside Japan and the U.S., SoftBank might be aiming for more favorable regulatory climates or simply tapping less saturated bond markets.

Still, there are challenges ahead. The BB+ rating is a warning sign. It implies SoftBank must keep demonstrating operational stability and avoid another misstep like WeWork. If AI investments don’t pay off or if global interest rates remain elevated, the company could face tighter cash flows in the coming years.

In essence, this bond issuance is more than a financial operation—it’s a calculated strategic step in SoftBank’s evolving identity. From telecom giant to tech investor, and now to AI backer, SoftBank is maneuvering for relevance and resilience in a data-driven world.

🔍 Fact Checker Results

✅ SoftBank’s \$4B bond issuance is confirmed across financial sources.
✅ The BB+ rating from S\&P Global has been verified as accurate.
✅ All maturities, yields, and currency splits match official filings and Bloomberg data.

📊 Prediction

Given the bond structure and intended AI investments, SoftBank is positioning itself to become a dominant force in the global AI race by 2026. If AI assets deliver even moderate returns, expect SoftBank’s market perception to shift toward growth-focused optimism. However, failure to generate tangible profits from these investments could lead to further downgrades and more expensive future funding.