SoftBank Group is reportedly in discussions to secure a $10 billion loan as part of its ongoing efforts to refinance debt tied to its substantial investment in OpenAI, according to sources familiar with the matter.
People with knowledge of the transaction, who requested anonymity due to private information, indicated that the two-year loan is expected to carry an interest rate of approximately 275 basis points above the secured overnight financing rate. Mizuho Bank is slated to act as the lead arranger and bookrunner for the facility.
Where this financing effort begins: The potential deal would expand the company's recent series of debt-raising activities centered on its OpenAI stake, even as market concerns about credit risks within the AI sector continue to escalate.
Founded and led by billionaire Masayoshi Son, SoftBank anticipates committing nearly $65 billion to OpenAI by October of this year. A portion of the proceeds from this new loan may be used to repay a $40 billion bridge loan raised earlier this year for the same investment purpose. The commitment deadline for the loan is set for August 31, with banks already in talks regarding participation.
In parallel, SoftBank is exploring additional fundraising through bond markets. The company is considering issuing between $10 billion and $20 billion in bonds to help refinance the bridge loan, while also planning a record-breaking ¥1 trillion (approximately $6.3 billion) retail bond issuance in Japan's domestic market to support its OpenAI investment commitments.
This development follows earlier this month when SoftBank secured another $10 billion loan backed by its OpenAI shares, which includes covenant provisions that could require additional cash collateral or early repayment under certain conditions. Both SoftBank and Mizuho Bank declined to comment on these matters.
The aggressive financing push comes as U.S. technology firms are planning to invest trillions of dollars in data centers and other AI infrastructure over the coming years. According to compiled data, companies have already raised more than $410 billion through bond markets this year alone for such facilities and related AI investments.