SoftBank CEO Masayoshi Son speaks during the company's annual general meeting in Tokyo on June 20, 2024.
Kosuke Okahara | Bloomberg | Getty Images
Softbank On Friday, it announced plans to issue euro and dollar-denominated bonds as it looks to pay down debt and focus its investments on artificial intelligence.
The massive Japanese holding company said it will issue about $900 million of U.S. dollar-denominated bonds in two tranches, and 900 million euros, or $962.8 million, of bonds in two tranches as well. It will have interest rates between 5.4% and 7% per annum.
SoftBank said the funds raised will be used “to repay debts and for general corporate purposes.”
The company's shares closed up 2.5% after news of the bond issuance.
The debt fundraising comes as SoftBank's overall financial losses have begun to narrow as it scores some successes, including the initial public offering of its chip design company. arm.
Meanwhile, the company, which runs a massive tech investment arm called the Vision Fund, has indicated it is also looking to increase investments in AI companies.
In a rare public appearance this month, Masayoshi Son, founder and CEO of SoftBank, talked about a concept he called artificial superintelligence, or ASI. He said this points to artificial intelligence that is 10,000 times smarter than humans, which he expects to exist within 10 years.
SoftBank is likely looking to capitalize on improved investor sentiment toward the company, highlighted by its shares rising 65% since the start of the year.
