This article first appeared on GuruFocus .
SoftBank Group ( SFTBY , Financials ), has raised $11.1 billion through a record high-yield bond sale as Masayoshi Son's investment group looks for more funding for its massive artificial intelligence push.
The dollar- and euro-denominated offering is the largest high-yield corporate bond sale globally, surpassing a $10.9 billion deal by French telecom company Numericable in 2014, according to LSEG data.
SoftBank sold $10 billion of dollar-denominated senior notes across three maturities, paying interest rates of 8.625%, 9.25% and 9.75%. It also sold 1 billion of euro-denominated notes with yields ranging from 7.125% to 8%.
Those borrowing costs are considerably higher than SoftBank's 2021 dollar- and euro-denominated debt issuance, when yields ranged from 2.125% to 5.25%.
The money comes as SoftBank continues to pour capital into AI. The company has committed $64.6 billion to OpenAI and expects to own roughly 13% of the ChatGPT maker by next week. It is also acquiring ABB's robotics business for $5.4 billion and DigitalBridge for $3.1 billion.
SoftBank has already raised $14.6 billion through high-yield bonds this year, accounting for 63.4% of the Asia-Pacific and Japan high-yield corporate bond market, according to Reuters.
The financing push also comes as planned IPOs for OpenAI and SoftBank's SB Energy have been delayed, potentially limiting another source of funding.
The next catalyst is how SoftBank funds its remaining AI commitments and whether planned asset sales or future IPOs can provide additional capital.
