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SoftBank mobile unit debuts euro bond sale on AI spending concerns
SoftBank Corp, the mobile unit of Japan’s SoftBank Group, began marketing its debut euro-denominated bond with six- and 10-year maturities as investors weighed risks tied to its parent’s AI spending.
The June 2032 tranche is being offered at 135 to 140 basis points above mid-swaps, while the June 2036 notes are around 170 basis points above, and the deal is expected to price later today.
The increased spending has drawn scrutiny from ratings firms as SoftBank Group explored raising up to US$40 billion in loans and planned to finance a stake in OpenAI.
SoftBank Corp’s bonds are expected to be rated BBB by S&P and BBB+ by Fitch, and the sale is being managed by JPMorgan, BNP Paribas, Citigroup, and Mizuho.
🔗 Source: Bloomberg
🧠 Food for thought
Implications, context, and why it matters.
This bond sale fits a plan to tap global markets
- SoftBank Corp. launched its first euro bond after securing issuer ratings in 2024, part of a push to add overseas bond sales to its funding toolkit 1.
- It received fresh issuer ratings from S&P Global Ratings Japan Inc. and Fitch Ratings Japan Limited, the local arms of the global credit rating firms, to get an outside view of its operations and finances and to support a broader mix of funding options, including bonds sold abroad 1.
Investor attention centers on parent company risk
- Investor concerns about SoftBank Group’s spending could shape SoftBank Corp.’s access to markets, even when SoftBank Corp.’s own credit story stays steady.
- The spreads offered on the euro bonds suggest buyers may ask for extra yield to cover what they see as risk tied to the wider group.
- The sale also checks whether SoftBank Corp. can pull in more investors outside Japan while SoftBank Group remains a worry for some buyers.
Recent SoftBank developments
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