(July 17): SoftBank Group Corp plans to sell about ¥60 billion (US$369 million or RM1.51 billion) of notes to institutional investors in Japan this month after domestic retail and foreign-currency bond offerings earlier this year.

The Japanese company plans to price about ¥50 billion of three-year and ¥10 billion of five-year notes in the week of July 27, according to lead manager Daiwa Securities Co. The deal will also be arranged by Nomura Securities Co and SMBC Nikko Securities Inc.

The new offering underlines SoftBank’s growing funding needs as it expands investment in artificial intelligence (AI), including a commitment of almost US$65 billion (RM265.26 billion) to OpenAI. Masayoshi Son’s firm has already raised ¥678 billion this year through subordinated bond offerings to retail investors, and it tapped the US and euro bond markets in April.

Concerns over returns on AI investments have intensified recently, weighing on semiconductor-related stocks including SoftBank subsidiary Arm Holdings plc. SoftBank shares have retreated from their early-June peak after reports that OpenAI’s initial public offering may be delayed.

SoftBank has also been considering a margin loan backed by its OpenAI stake, cutting its original target to around US$6 billion from an initial US$10 billion.

The company’s latest deal comes after S&P Global Ratings revised its outlook to stable from negative on July 16, saying SoftBank’s financial position had improved more than previously expected following a sharp rise in Arm’s share price. The company’s long-term issuer credit rating was affirmed at BB+, one step below investment grade.

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