SoftBank Pays Record 8.5% on Part of $3.6 Billion Bond Sale

SoftBank Group Corp. agreed to pay its highest interest rate on dollar notes as part of a $3.6 billion fundraising, underscoring concerns about the Japanese conglomerate’s large-scale investments in artificial intelligence.

The company sold $1.5 billion and €1.75 billion ($2.1 billion) of bonds on Wednesday, with part of the proceeds earmarked for repaying bridge loans tied to its investments in US technology firm OpenAI, according to a company statement. The 8.5% coupon on the 10-year dollar tranche in the deal is a record for the firm in the currency, surpassing a previous high in October, according to data compiled by Bloomberg.