SoftBank secures $40 billion loan to fund OpenAI investment

Investing.com -- SoftBank Group Corp. announced Friday that it entered into a bridge facility agreement with a total facility amount of $40 billion to fund its follow-on investment in OpenAI and for general corporate purposes.

The loan agreement was executed on Friday with JPMorgan Chase, Goldman Sachs, Mizuho Bank, Sumitomo Mitsui Banking Corporation, and MUFG Bank serving as lenders. The facility has a maturity date of March 25, 2027.

The bridge facility is intended to raise funds required for SoftBank's $30 billion follow-on investment in OpenAI Group PBC via SoftBank Vision Fund 2. SoftBank entered into a definitive agreement with OpenAI on February 27 to participate in the company's fundraising round.

Borrowings under the bridge facility agreement are expected to be repaid in stages by the maturity date through the utilization of existing assets and other financing measures.

Upon completion of the follow-on investment, SoftBank's cumulative investment in OpenAI is expected to total $64.6 billion, representing an ownership interest of approximately 13%. The follow-on investment is subject to the satisfaction of customary closing conditions

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