SoftBank Group Corp. is raising ¥500 billion ($3.2 billion) through a seven-year unsecured bond offering aimed at individual investors, priced at a 3.98% annual coupon—its highest on a senior yen-denominated note in more than 15 years.
The rate landed near the top of the previously indicated 3.5%-4.1% range. Proceeds will go toward repaying existing borrowings, including a bridge loan tied to SoftBank’s expanded stake in OpenAI.
The issuance, branded as the “Fukuoka SoftBank HAWKS Bond,” will push Masayoshi Son’s investment conglomerate past ¥9.9 trillion in cumulative retail bond sales. The company already accounts for roughly 42% of Japan’s outstanding retail bond market, according to Bank of Japan data.
Japanese retail investors have grown increasingly receptive to corporate debt since the central bank ended its negative interest rate policy in March 2024. Record issuance volumes this year—exceeding ¥2.79 trillion—reflect the shift toward higher-yielding alternatives as government bond yields climb.
Japan Credit Rating Agency assigned the bond an A rating. The offering period runs through December 5, with settlement scheduled for December 8.
SoftBank’s borrowing costs have risen alongside benchmark rates, though CFO Yoshimitsu Goto indicated demand remains robust. With nearly ¥5 trillion in bonds still outstanding, the company continues relying heavily on mom-and-pop investors to finance its AI-focused investment strategy.
