SoftBank

The Nikkei rose by around two percent, led by gains in technology stocks; Softbank gained more than six percent, and Tokyo Electron and Advantest also advanced. Taiyo Yuden climbed sharply at times after forming an alliance with TDK. High oil prices and sharply higher US bond yields — reaching levels above 5.6 percent for 30-year paper — are weighing on global equity markets. Chinese markets reacted mutedly to a disappointing stimulus package and are heading for their largest quarterly loss in more than four years. » More on handelsblatt.com

Softbank issued dollar and euro tranches totaling about $11 billion and is offering investors yields of up to 9.75 percent (up to ten percent reported). Part of the proceeds is to go to a capital increase at OpenAI; Softbank plans to boost its commitment to OpenAI to $65 billion by October and to invest more heavily in other AI companies. The issuance was oversubscribed but provoked a split market reaction, as high yields and a BB+ credit rating reflect the risks of Son’s aggressive AI strategy. » More on handelsblatt.com

According to reports, SoftBank plans to raise around $11 billion (USD 10 billion and EUR 1 billion) from investors to make the third installment to OpenAI due in October. The securities are expected to be high-yield bonds with maturities of roughly 3.5 to 7.5 years and potential yields of up to 10%; investor indications exceed $8 billion. SoftBank could temporarily breach its self-imposed limit of maximum 25% debt-to-assets. The financing is also relevant for partners such as Nvidia, Oracle and the data-center project of subsidiary SB Energy. » More on heise.de