SoftBank is set to conduct a record retail bond sale in Japan amounting to $6.3 billion.

      SoftBank is set to launch a record retail bond sale amounting to 1 trillion yen, roughly $6.3 billion, making it the largest such offering by any issuer in Japan, aimed at financing its investment commitments to OpenAI. Analysts indicate that banks have been hesitant to shoulder the risk, which has positioned retail investors as the main source of funding for this deal.

      The company has identified Japanese households as its last-resort lenders for its AI investment. The planned bond issuance is unprecedented, with a total of ¥1 trillion, intended to support its commitments to OpenAI.

      The bond terms are designed to be attractive. The seven-year bonds are anticipated to price on September 4 with a projected coupon rate between 4.3% and 4.9%. Additionally, SoftBank expects to receive an A rating from the Japan Credit Rating Agency.

      However, international credit agencies have a different evaluation; S&P rates SoftBank at BB+, which is one level below investment grade, having shifted its outlook from negative to stable in July.

      The choice to go retail stems not from enthusiasm but from necessity. According to Yuuki Fukumoto of the NLI Research Institute, banks are struggling to accept the risk linked to weak deposit growth, the company's credit rating, and the bond's seven-year duration, thereby increasing reliance on retail investors. This trend has already led Oracle to seek financial support outside the traditional banking system.

      Moreover, this has become a regular occurrence. This marks SoftBank’s third retail bond issuance of the year, following two previous raises of ¥418 billion in April and ¥260 billion in June.

      Even a ¥1 trillion bond sale doesn't close the funding gap. As noted by Sharon Chen of Bloomberg Intelligence, a shortfall exceeding $20 billion remains, suggesting that offshore issuance may be necessary soon.

      The stakes involved are substantial. SoftBank has committed over $60 billion to OpenAI and has sought a separate $10 billion margin loan secured by its stake in the company.

      Many companies are simultaneously increasing their investments. Alphabet, Meta, Microsoft, and Amazon have together committed nearly $2.4 trillion to AI-related projects, while Alibaba raised about $10 billion in Hong Kong recently for investments in chips and data centers.

      In contrast, a European issuer would face challenges in executing a similar strategy. Bond prospectuses in the EEA frequently contain restrictions preventing sales to retail investors due to PRIIPs regulations, which mandate a key information document that most issuers are unwilling to produce.

      This situation seems at odds with Brussels’ intentions. The Savings and Investments Union, established in March 2025, aims to redirect some of the €10 trillion in savings held by European households—about 70% of which is in bank deposits—into capital markets, particularly at a time when Masayoshi Son has deemed bubble discussions as ridiculous.

      Japan has demonstrated a practical example of how to mobilize savings, with retail investors now backing a seven-year gamble on a company still uncertain about the profitability of its technology.