SoftBank shares fall 6.01% as AI funding and investments expand
Key Facts
SoftBank shares fell 6.01% to 4,554 yen in trading on Tuesday, October 20, 2026, according to the price displayed on Investing.com, as the group expanded its artificial intelligence investments and bond financing. The company announced in October that its total investment in OpenAI had reached about $64.6 billion. Its stake in the company stood at roughly 13% after it completed the latest installment of its additional investment. SoftBank said in its statement that the installment was funded with proceeds from an issuance of senior bonds denominated in foreign currencies. This comes alongside talks on further investments and a potential deal to expand the group's presence in security services.
SoftBank put the total value of its foreign-currency bond issuance at about $11.1 billion in its September announcement. The shortest-dated dollar tranche carries an annual coupon of 8.625%, according to the company's statement on the issuance terms. The coupon rises to 9.250% for the middle tranche and 9.750% for the longest-dated tranche. The foreign-currency bonds received BB+ ratings from both Standard & Poor's and Fitch, according to the same statement. In the market for AI-related credit protection, Reuters reported on October 15 that spreads on CoreWeave's 5-year credit default swaps exceeded 1,100 basis points, citing S&P Global Market Intelligence data.
Before the foreign-currency bond issuance, SoftBank announced its decision to repay the entire outstanding balance of its bridge facility early. The balance covered by the decision totaled $25.9 billion, and the company set September 15, 2026, as the repayment date. Alongside its financing arrangements, the group sets limits on its loan-to-value ratio under its financial policy. Chief Financial Officer Yoshimitsu Goto said the policy aims to "keep the loan-to-value ratio below 25% under normal conditions." He added that the upper limit is 35% under exceptional conditions, according to his message in the group's annual report.
In the domestic market, SoftBank announced in September a 1 trillion yen bond issuance aimed primarily at retail investors. The company set the annual coupon at 4.75%, according to its statement on the domestic bonds. It earmarked part of the proceeds to redeem domestic bonds. It also allocated another portion to fund the purchase of ABB's robotics business. The uses of this issuance differ from those of the foreign-currency bond proceeds, which the group used to fund the latest installment of its investment in OpenAI.
Potential acquisition activity extends to U.S. security services company Allied Universal, according to a Reuters report published on October 16 citing a person familiar with the matter. The agency said SoftBank was considering buying the company at a potential valuation of about $18 billion. Deliberations remain preliminary, and no final decisions have been made on the deal. According to Investing.com's coverage, Allied Universal's existing operations could provide a ready-made platform for testing robots and deploying automation at scale. Its customer base could also offer scope to extend SoftBank's robotics ambitions into the security services sector.
On OpenAI's next funding round, Reuters reported, citing a person familiar with the matter, that SoftBank was in talks to participate. The talks include Abu Dhabi's MGX and other existing backers of the company. SoftBank has not announced a new investment commitment as part of these talks. The group's next scheduled financial disclosure is its fiscal 2026 second-quarter earnings announcement. SoftBank set the announcement for November 10, 2026, according to its financial calendar.