Japanese tech investment giant SoftBank Group is set to launch its largest-ever retail bond issuance, aiming to raise a staggering 600 billion yen (approximately $4.1 billion). This bold financial move is designed to help the company manage existing debts and complete payment for shares of British chip designer Arm, which it reacquired from its Vision Fund in August 2023.
According to a filing released on Monday, the bond sale will target individual investors, rather than institutional buyers, signaling SoftBank’s confidence in retail market appetite. The bonds will mature in May 2030 and are expected to yield between 3% and 3.6%, with the final interest rate to be determined on April 18.
A SoftBank spokesperson explained that the raised funds will serve a dual purpose: redeeming maturing bonds and settling part of the outstanding balance from the Arm share acquisition. This follows SoftBank’s increasingly aggressive strategy to consolidate control over its most valuable assets and strengthen its financial base.
SoftBank founder and CEO Masayoshi Son has long been known for leveraging debt to fuel ambitious investments. Just last week, SoftBank reportedly led a massive $40 billion funding round in OpenAI, the creators of ChatGPT, with Son’s company expected to contribute around $30 billion to the deal. Moves like this show that SoftBank is doubling down on the future of artificial intelligence and semiconductor technology—two areas seen as critical to next-generation computing.
Despite its large-scale borrowing, SoftBank maintains a relatively conservative loan-to-asset ratio. The company currently has about 7 trillion yen ($47.8 billion) in outstanding bonds, but aims to keep its total debt at less than 25% of its total assets. As of December 2024, this ratio stood at 12.9%, according to data from LSEG.
This massive bond issuance is not just about managing debt—it’s a calculated step to support SoftBank’s broader investment strategy. By offering a relatively attractive yield to retail investors, the company is leveraging its strong brand reputation in Japan and tapping into public interest in its high-profile tech ventures.
The decision also comes at a time when SoftBank is reshaping its financial strategy post-pandemic. After a few rocky years marked by volatile investments, SoftBank is now focusing on long-term value creation through cutting-edge technologies like AI and semiconductors. With Arm preparing for more market dominance following its successful IPO in 2023, SoftBank’s ownership stake is becoming even more valuable.
As the April 18 interest rate announcement nears, all eyes will be on how much interest retail investors show in these new bonds. If the response is strong, it could provide SoftBank with the financial flexibility it needs to pursue even more ambitious ventures in the years ahead.
