SoftBank Group Corp. has begun outreach to investors in advance of a possible six-part bond offering that would include issues denominated in both U.S. dollars and euros. The company has engaged banks to arrange benchmark-sized notes across three dollar maturities - 3.5 years, 5.5 years and 10 years - and three euro tranches maturing in four, six and eight years.
The planned multi-currency issuance follows several recent financings by the group and its units. Last Friday, the group's mobile arm, SoftBank Corp., completed its debut euro bond, raising c1.2 billion (about $1.4 billion). In a separate transaction last week, SoftBank Group priced a5418 billion (approximately $2.6 billion) of hybrid bonds aimed at retail investors; those hybrids carried the highest coupon among comparable corporate retail-targeted debt.
SoftBank's renewed borrowing comes as the conglomerate increases its capital deployment into artificial intelligence initiatives, including plans to help finance a stake in the U.S. tech company OpenAI. That higher level of spending has attracted scrutiny from credit analysts. In March, S&P Global Ratings revised its outlook on the group to negative, citing risks related to its expanding exposure to OpenAI and more general funding pressures.
Deutsche Bank, Goldman Sachs International, JPMorgan and Mizuho have been named joint global coordinators for the proposed six-part deal. Investor calls for the transaction are scheduled to take place on Monday and Tuesday.
Context and mechanics
The issuance structure under discussion would comprise three dollar-denominated benchmark tranches with staggered maturities and three euro-denominated tranches with mid- to longer-term maturities. The banks appointed to coordinate the transaction are set to lead investor outreach across both currencies.
Recent funding activity
- SoftBank Corp. raised ac1.2 billion via its debut euro bond last Friday.
- SoftBank Group issued a5418 billion of hybrid bonds last week, aimed at retail investors and notable for carrying the highest coupon for such corporate retail debt.
Credit outlook
Rating agency attention has followed the group's stepped-up AI commitments, with S&P Global Ratings moving the group's outlook to negative in March due to heightened exposure to OpenAI and broader funding risk concerns.
The company and its coordinators are holding investor calls early in the week as they sound out demand for the multi-part offering.