SoftBank Reaches $64 Billion in Retail Bonds to Fuel AI Ambitions
SoftBank Group is nearing 10 trillion yen (approximately $64 billion) in total bond sales to retail investors, solidifying its position at the forefront of Japan’s consumer bond market. The funding pipeline is assisting Chairman and CEO Masayoshi Son in advancing his initiatives in artificial intelligence. On Wednesday, the company revealed the details of a new 500 billion yen, seven-year retail bond, marking SoftBank’s total bond issuances at 9.9 trillion yen. The group has repaid 4.99 trillion yen, with nearly 5 trillion yen remaining outstanding, according to a report by Nikkei Asia. The most recent bond features a coupon of 3.98 per cent, surpassing the 3.15 per cent rate provided in a comparable seven-year sale from last November. Yoshimitsu Goto stated, “Rising interest rates were unavoidable,” yet emphasized that “demand remained strong. The base rate going up can’t be helped,” he stated to Nikkei Asia. “Sales are robust, to the extent that certain brokerages find themselves entirely sold out prior to the establishment of terms.”
SoftBank intends to direct the proceeds towards its growing AI portfolio. Son seeks to establish the company as the leading platform provider for artificial superintelligence globally. SoftBank plays a significant role in the $500 billion US-based Stargate AI infrastructure project and has heightened its investment in OpenAI. In October, the group revealed intentions to acquire the robotics division of Switzerland’s ABB for approximately 800 billion yen, bolstering Son’s initiative in what he describes as “physical AI”. To date, SoftBank’s investments for the financial year ending in March have totaled $40 billion, marking a sevenfold increase compared to the previous year. As of May, Japan reported 10.7 trillion yen in outstanding retail bonds. SoftBank accounted for 42 percent, leading over banks at 32 percent, while the remaining 26 percent was issued by other non-financial companies.
CFO Goto stated that SoftBank’s retail bonds continue to account for merely a small fraction of Japan’s total financial assets. According to data, household assets totaled 2.24 quadrillion yen by the end of June, with cash and deposits accounting for approximately 1.13 quadrillion yen. SoftBank has divested its complete stake in US chipmaker Nvidia Corp. for approximately $5.83 billion, according to the sources. The company announced the sale in its Q2 FY26 earnings call, during which it reported results that exceeded expectations. Previously, SoftBank had raised its stake in Nvidia to approximately $3 billion, which equates to 32.1 million shares, by the end of March. The sale contributed to the company’s net profit for the quarter, which rose to 2.5 trillion yen ($16.2 billion). SoftBank’s Vision Fund significantly enhanced earnings, primarily owing to profits from its investment in OpenAI, which contributed 2.16 trillion yen to the results.
SoftBank’s relationship with Nvidia began in 2017, when its Vision Fund made an investment of approximately $4 billion in the chipmaker. It exited completely in January 2019, only to re-enter with a new stake earlier this year. Even after reselling the shares, SoftBank continues to maintain a connection with Nvidia through its AI initiatives, notably the substantial $500 billion Stargate data centre project in the US.
