SoftBank plans to raise ¥600 billion (approximately $4.1 billion) by issuing five-year bonds in its largest-ever sale targeted at retail investors.
Though there’s been global market instability, triggered in part by current U.S. tariffs, the Japanese tech investment firm is pressing ahead with its plan.
The funds raised will be used to redeem existing bonds and contribute to the outstanding payment for the acquisition of shares in chip designer Arm, which SoftBank secured through its Vision Fund in August 2023.
The bonds are set to mature in May 2030, offering a yield ranging between 3% and 3.6%. The exact interest rate will be determined on April 18.
Despite SoftBank’s debt load — about ¥7 trillion ($47.83 billion) in outstanding bonds — the company is projecting confidence in its ability to manage its financial obligations.
A spokesperson confirmed that the debt-to-assets ratio is expected to remain below 25%, with the current ratio sitting comfortably at 12.9% at the end of December 2024. This shows that, even with the massive scale of this bond offering, SoftBank is maintaining financial discipline while simultaneously making aggressive investments.
This bond sale follows on the heels of SoftBank’s $30 billion investment in OpenAI’s latest funding round, contributing to a larger $40 billion push. The move reiterates the company’s high-risk, high-reward strategy, which Masayoshi Son, the company’s founder, has become known for.
His penchant for leveraging debt to drive major investments has impacted SoftBank’s path forward, enabling the company to scale globally in technological advancement.
Global markets have become highly cautious due to geopolitical factors, such as escalating US tariffs, but SoftBank’s continued aggressive investments say that Son sees long-term growth potential even amid uncertainty.
While the bond sale brings an opportunity for individual investors, it also highlights the company’s drive to grow through its Vision Fund. The proceeds will help fund the strategic acquisition of Arm, an essential step in securing SoftBank’s stake in the chip-design industry, which continues to be a key part of its portfolio.
