SoftBank plans $1.6 billion retail bond sale as shares hit record high

SoftBank Group Corp. is returning to Japan’s retail bond market with plans to raise ¥260 billion, or about $1.6 billion, through another sale of subordinated bonds targeted mainly at individual investors, according to Bloomberg. The deal comes roughly two months after a similar retail offering, underscoring the company’s continued reliance on domestic investors for funding.

The planned bond sale adds another layer to SoftBank’s financing strategy at a moment when its shares have been surging. As reported by Bloomberg, the company’s stock recently hit a record high on hopes that its stakes in OpenAI and SB Energy Corp. could deliver major gains if those businesses go public.

That market optimism has also helped lift broader Japanese equities. According to The Next Web, SoftBank’s record share price on Monday helped push the Nikkei 225 above 65,000 for the first time, capping a stretch in which the conglomerate added more than $60 billion in market value.

The bond issue is aimed mainly at individual investors, a sign that SoftBank is again tapping retail demand for funding that can help diversify its investor base. Subordinated bonds typically rank below other debt in repayment priority, which can make them riskier than senior bonds but can also offer higher yields to attract buyers.

For investors, the offering will be watched as a test of appetite for SoftBank credit at a time when the company is benefiting from a strong stock rally and renewed enthusiasm around its portfolio. For SoftBank, the proceeds could provide additional financial flexibility as it continues to back large technology bets and position itself for possible future listings tied to its holdings.