SoftBank’s OpenAI Ambition Is Too Grand for Banks: Shuli Ren (1)

SoftBank Group Corp., the whale that has fattened the wallets of many wealthy Asians, is back to tease with high-yielding dollar bonds again.

Founder Masayoshi Son’s latest $2.9 billion offerings will cost him. These hybrids, which allow the company to defer coupon payments and are subordinate to senior debt, have to offer extra yields to entice investors. Softbank will pay 8.25% for an issue due in 2065, with the first reset date in 2035. By comparison, the straight 2035 bond is trading at only 6.8%.

SoftBank is racing to lock down its equity investment in OpenAI. In April, it led a funding ...