SoftBank Group is reportedly in talks with investment banks about a potential bond issuance of between $10 billion and $20 billion to help refinance a loan for its investment in U.S. tech giant OpenAI.

　　Insiders revealed that the bond issuance could be denominated in U.S. dollars and euros, with the earliest timing possibly in September. Because the matter involves non-public information, the insiders requested anonymity. They added that discussions are still ongoing and details may change.

　　Insiders said that proceeds from some bond issuances will be used to repay the $40 billion bridge loan that SoftBank sought earlier this year to invest in OpenAI. SoftBank Group founder is billionaire Masayoshi Son, whose credit rating is junk. SoftBank plans to invest nearly $65 billion in OpenAI before October, with some of the funds raised through loans.

　　With many companies currently expanding their presence in AI, a financing frenzy is underway. The market is concerned about rising credit risk and whether investments will be able to deliver returns. As competition for capital intensifies, some companies seeking financing related to artificial intelligence are turning their attention to junk bond investors, even if the debt itself is investment-grade.

　　Meanwhile, U.S. technology companies plan to invest tens of trillions of dollars in data centers and other AI infrastructure over the coming years. Bloomberg compiled data showing that this year alone, companies have already financed more than $410 billion for those facilities and other AI investments through the bond market.

　　In an email responding to a request for comment, a SoftBank spokesperson said, “We are considering various options for refinancing the bridge loan, but we have not made any decisions, including the amounts for each option.”

　　Insiders said that unlike most of SoftBank’s previous overseas bond offerings, this time is the first attempt in more than a decade by SoftBank to issue bonds in the 144A format, which allows them to be sold to U.S. institutional investors. Insiders also said the approach will help SoftBank raise more funds and may improve market demand for the deal.

　　The data shows that if SoftBank’s bond issuance reaches the upper end of its target range, it would be the largest such corporate deal in Asia this year by deal size. It also marks the company’s second push into the offshore bond market this year.

　　In April this year, SoftBank Group issued $3.6 billion worth of bonds denominated in U.S. dollars and euros, with the coupon on the 10-year dollar notes reaching a record 8.5%. During trading on Wednesday morning, the yield on the dollar bonds was still roughly at the same level.