SoftBank Stock Soars as CEO Talks Super AI Issuing 186 Billion Bonds

In this article, 9984.T-JP focuses on your favorite stock. CREATE FREE ACCOUNT
On Friday, June 20, 2024, SoftBank Group Corporation Chairman and CEO Masayoshi Son delivered a speech at the company’s annual shareholder meeting in Tokyo, Japan. Son outlined his ambition to help create artificial intelligence that is thousands of times smarter than any human, which is his grandest statement since the Japanese conglomerate began taking measures to support its finances after a series of ill-timed entrepreneurial bets. (Photo by Koki Kataoka/Bloomberg via Getty Images)
SoftBank announced on Friday its plans to issue euro and dollar-denominated bonds to repay debt and focus its investments on artificial intelligence. The massive Japanese holding company stated that it will issue approximately $900 million worth of dollar-denominated bonds in two tranches and issue €900 million ( $962.8 million) worth of bonds in two tranches. The loans carry annual interest rates ranging from 5.4% to 7%. SoftBank stated that the funds raised will be used for “repaying debt and general corporate purposes.” After the bond issuance news, its stock price closed up 2.5%.
As SoftBank raises funds through debt, its overall financial losses have begun to narrow as it has achieved some successes, including the initial public offering of chip designer Arm. Meanwhile, the company also stated that it is seeking to increase investments in artificial intelligence companies. The company operates a large technology investment division called the Vision Fund. In a rare public appearance earlier this month, SoftBank founder and CEO Masayoshi Son discussed a concept he referred to as Artificial Super Intelligence (ASI). He said this refers to artificial intelligence that is 10,000 times smarter than humans, and he expects it to exist within 10 years. SoftBank may be hoping to capitalize on improved investor sentiment towards the company, as its stock price has risen 65% year-to-date.