The Middle East’s business community follows the global AI funding race with more than passing interest. SoftBank Group, the Japanese technology investor whose moves shape the direction of the sector, has raised $11.1 billion through a dual-currency bond issue to bankroll its artificial intelligence ambitions.
The issuance combines $10 billion of dollar-denominated senior notes with €1 billion of euro-denominated notes, in one of the largest debt raises the group has staged in recent years. SoftBank shares surged as much as 7 per cent on the Tokyo Stock Exchange as the sale was absorbed, trading at ¥6,352, equivalent to $40.17.
The shape of the raise
The dollar notes are split across three maturities. A $1 billion tranche falls due in 2030, while two further tranches of $4.5 billion each mature in 2032 and 2034, giving the issuance overall maturities of between three and a half and seven and a half years. The tranches carry yields of 8.625, 9.25 and 9.75 per cent respectively, with interest paid semi-annually on 1 April and 1 October.
The euro component comprises two tranches of €500 million with maturities of four and six years, yielding 7.125 and 8 per cent. Citigroup Global Markets, Goldman Sachs, JP Morgan Securities and Morgan Stanley were among the initial purchasers, alongside other joint bookrunners and co-managers.
Funding the OpenAI commitment
The proceeds are earmarked for the $10 billion final payment of SoftBank’s $30 billion follow-on investment in OpenAI, the agreement struck in February 2026. That payment has now closed. The group also expects to cancel the remaining $10 billion of undrawn capacity under the $40 billion bridge facility agreed in March, a sign that it expects the bond market to carry the full weight of its AI funding plans.
The scale of the raise underlines how central OpenAI has become to SoftBank’s strategy. Rather than relying on short-term bank facilities, the group has tapped institutional investors directly, extending its repayment horizon to 2034 while locking in fixed coupons along the way.
Strong market appetite
The reception surprised even seasoned observers. “I was positively surprised by the market appetite,” said Satoru Aoyama, senior director at Fitch Ratings. “Now AI-driven debt issuance has reached the high-yield market at scale.”
The order books point to deep demand for exposure to the AI supply chain, even at yields once reserved for far riskier credits. For bond investors, SoftBank has become a proxy for the sector’s longer-term fortunes.
Why it matters for the Gulf
For the Middle East, the transaction carries particular weight. Gulf sovereign funds and family offices have been building their own positions in AI infrastructure and model developers, and SoftBank’s ability to raise capital at this scale signals the depth of institutional support behind the sector worldwide.
It also sets a benchmark for how large AI commitments can be financed: long-dated, multi-currency and spread across a broad investor base. As regional economies diversify beyond hydrocarbons, access to capital markets on these terms will help determine how quickly their own technology ambitions can be realised.
SoftBank’s bond success suggests the financing environment for AI investment remains firmly open. For executives and investors tracking the sector from Dubai to Riyadh, the message is that capital, at the right scale and with a credible story, is still readily available.
Source: www.forbesmiddleeast.com