SoftBank Secures $11.87 Billion Loan to Support OpenAI Investment

SoftBank Group has secured a loan of $11.87 billion to support its investment in the American artificial intelligence company OpenAI, exceeding the previous target of $10 billion. This two-year financing was finalized last week, attracting participation from around 20 banks. The borrowing will increase SoftBank's debt financing activities related to OpenAI, including a $10 billion margin loan secured by OpenAI shares, as well as a potential bond issuance of up to $20 billion, despite market concerns over rising credit risks in the AI sector. Last week, SoftBank announced plans to repay the remaining $40 billion loan obtained earlier this year to fund its investment in OpenAI, with plans to repay $25.9 billion by September 15. This unsecured loan was originally due in March next year. Meanwhile, SoftBank will meet with investors in New York this week to discuss interest in a potential issuance of dollar junk bonds, with insiders stating that the company is considering raising $10 billion to $20 billion through bond issuance.

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