TLDR: SoftBank Group Corp. is proceeding with a ¥100 billion ($676 million) subordinated bond issuance, a strategic move to bolster its financial capacity and accelerate its significant investments in artificial intelligence, including a massive $500 billion AI infrastructure project.
SoftBank Group Corp. announced on August 13, 2025, its plans to issue approximately ¥100 billion ($676 million) in subordinated bonds. This financial maneuver is a key component of the conglomerate’s broader strategy to capitalize on improved market sentiment and inject fresh capital into its ambitious artificial intelligence (AI) drive. The issuance, identified as the 7th series of unsecured subordinated notes, features optional interest payment deferral and early redemption provisions, primarily targeting institutional investors.
These hybrid notes, with a lengthy 35-year term, are designed to possess characteristics similar to equity, despite being recorded as interest-bearing debt. SoftBank anticipates that these notes will be eligible for 50% equity treatment from leading rating agencies such as Japan Credit Rating Agency, Ltd. and S&P Global Ratings Japan Inc. The proceeds from this issuance are earmarked for the early redemption of existing domestic hybrid notes that are set to reach their first voluntary call date in February 2026, optimizing the company’s debt structure.
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This ¥100 billion bond deal is part of a more extensive capital mobilization effort by SoftBank, which in July 2025 also raised $4.2 billion through USD and EUR-denominated bonds. The overarching goal of these financial strategies is to fund SoftBank’s monumental $500 billion AI infrastructure initiative. A significant component of this initiative is the ‘Stargate’ project, which aims to establish large-scale data centers across key global locations, including the United States, the UAE, and Norway. This aggressive debt issuance reflects SoftBank’s unwavering commitment to securing the necessary financial firepower to execute its vision of becoming a pivotal player in the global race for AI dominance.
