SoftBank eyes $5b margin loan backed by Arm shares

SoftBank Group is negotiating a US$5 billion margin loan from global banks, using shares of its chip unit Arm Holdings Plc as collateral.

The loan is intended to support SoftBank’s further investments in OpenAI this year.

SoftBank, led by Masayoshi Son, has increased AI investments, including a recent US$5.4 billion purchase of ABB Ltd’s robotics arm.

Arm’s stock has risen 38% in 2025, boosting SoftBank’s borrowing capacity, and the new loan would raise total margin loans to US$18.5 billion.

JPMorgan notes that AI-related debt now totals US$1.2 trillion, the largest category in the investment-grade debt market.

🔗 Source: Bloomberg

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The article omits loan-to-value ratio (the share of collateral value a lender will lend against), interest spread (the premium over a benchmark rate), and how many Arm shares are pledged as collateral. These figures set the risk of margin calls (demands for more collateral or repayment) if Arm falls.
SoftBank has $13.5 billion in Arm-backed margin loans as of March 2025, and a new $5 billion loan would lift that to $18.5 billion with Arm up 38% this year. A drop could force sales or fresh capital, slowing Son’s AI timetable.

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