Up to $20 billion in high-yield bonds! SoftBank's AI financing rush may be brewing the largest speculative corporate bond issuance in history.

SoftBank Group Corp. plans to meet with investors in New York next week to gauge market interest in a potential issuance of U.S. high-yield bonds. This move signifies that the investment firm, led by billionaire Masayoshi Son, is accelerating its financing efforts to support its significant bets on artificial intelligence. According to insiders, SoftBanks Chief Financial Officer Yoshimitsu Goto and other executives will engage in face-to-face discussions with investors from September 14 to 17 at Citigroup's offices. The individuals added that Citigroup, Goldman Sachs, JPMorgan Chase, and Morgan Stanley are organizing the meeting, targeting eligible bond investors compliant with U.S. Rule 144A. This investor meeting is not tied to any specific bond issuance. According to sources last month, SoftBank is considering raising $10 billion to $20 billion through the high-yield bond market, which may also include a portion denominated in euros. Barclays strategists noted in an early report this month that if the bonds meet inclusion criteria, their issuance could significantly impact the U.S. high-yield bond index and is expected to become one of the largest speculative-grade corporate bond issues in history. Barclays analyst Roanna Chau wrote in the report, The key issue is no longer whether SoftBank can access the financing market, but rather at what cost and what impact it will have on existing bondholders. She pointed out that this issuance may offer a "considerable" yield spread compared to SoftBanks existing bonds and similar credit products. SoftBank has invested billions of dollars into AI companies, which has not only increased the leverage on its balance sheet but also raised market concerns about its excessive exposure to AI-related risks. To support its investment in OpenAI, SoftBank secured a $40 billion bridge loan earlier this year and is currently diversifying its financing through the debt market to replace short-term liabilities with long-term bonds. Credit analyst Sharon Chen stated, If all pending projects are financed through debt, SoftBanks total debt could rise from about $80 billion in March 2025 to over $130 billion. She noted that the companys increasing AI holdings mean that a significant drop in AI stock valuations or further aggressive investments (especially in OpenAI) could become critical credit risk points. On September 4, SoftBank priced a 1 trillion (approximately $6.5 billion) corporate bond in the domestic Japanese market, setting a record for the largest single corporate bond issuance in Japan, mainly aimed at retail investors. Japanese individual investors have long favored SoftBank bonds due to their higher coupons, and the companys strong brand recognition as the owner of a professional baseball team and a major mobile operator. However, given the massive funding needed for Masayoshi Son's latest investment vision, SoftBank has had to rely more on international fixed-income investors. By October, SoftBank's cumulative investment in OpenAI is expected to approach $5 billion. But unlike many large tech firms that have raised substantial amounts from the global debt market, SoftBanks credit quality is relatively weak. S&P Global Ratings has assigned SoftBank a BB+ rating, the highest tier within speculative grade. In contrast, the two companies with the largest corporate bond issuances in 2026Alphabet and Amazonhave AA+ and AA ratings, respectively, both higher than Japan's sovereign credit rating.