SoftBank Group Corp. (SOBKY), the Japanese investment group backing U.S. technology company OpenAI, has attracted 21 additional lenders to the wider syndication of its $40 billion bridge loan. The new participants have been allocated approximately $7 billion of the facility, according to people familiar with the financing. First Abu Dhabi Bank PJSC, a banking group based in Abu Dhabi, Singapore investment firm GIC Pte, and international banking group Standard Chartered Bank have each taken nearly $1 billion. European, Japanese, and Taiwanese banks received the remaining portion of the new allocation. The growing lender group could help SoftBank spread part of the financing exposure created by one of the largest bridge loans ever arranged in the Asia-Pacific region.
Underwriters and senior lenders continue to hold the remaining $33 billion, although additional portions may be distributed to other institutions. The 12-month loan was signed in March and entered general syndication in May after already attracting lenders during an earlier stage of the financing. The deal is expected to generate more than $100 million in fees for its underwriters. It carries an initial interest margin of approximately 250 basis points above the Secured Overnight Financing Rate, which would produce an interest rate of around 6.14% at current SOFR levels. Investors may view the expanded participation as an important test of lender confidence in SoftBank's ability to finance its growing commitment to OpenAI.
SoftBank founder and Chief Executive Officer Masayoshi Son has pledged to go all in on OpenAI, with the company's commitments now exceeding $60 billion. Some bankers have expressed concerns about SoftBank's exposure to the artificial intelligence company as OpenAI faces increasing competition from rival AI business Anthropic PBC. OpenAI filed for a public listing last month after receiving an $852 billion valuation in a March fundraising round. The company's future performance could therefore become increasingly important to SoftBank's financial position and investor sentiment surrounding Son's broader artificial intelligence strategy.