Softbank Group Corp (SFTBY.US) is expanding its $40 billion loan program, inviting additional banks to participate in financing the group's investment in US tech giant OpenAI. Sources familiar with the matter indicate the transaction has recently entered a "soft launch" phase, with other lenders being invited to join as junior underwriters. Interested institutions are reportedly required to commit approximately $5 billion each. This latest investment in OpenAI follows over $30 billion already injected into the startup by the group. Last month, Softbank announced that JPMorgan, Goldman Sachs Group, Mizuho Bank, Sumitomo Mitsui Banking Corporation, and Mitsubishi UFJ Financial Group had underwritten a bridge loan maturing on March 25, 2027. The massive loan underscores founder Masayoshi Son's willingness to load the group with significant debt to cement its pivotal role in the global artificial intelligence race. OpenAI represents one of the group's largest investment projects, alongside its approximate 90% stake in chip design company Arm Holdings Plc. Softbank's substantial AI investments, coupled with the rising debt undertaken to fund them, have unsettled market observers. In March, S&P Global Ratings revised Softbank's credit outlook from "stable" to "negative," citing concerns that its OpenAI investment could impair the Japanese company's liquidity and asset credit quality. Separately, Softbank is also exploring raising more capital through the bond market. According to another source, the group is in discussions with investors regarding a potential issuance of six tranches of US dollar and euro-denominated bonds.
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