Sharon Chen

OpenAI CEO Sam Altman told Fortune earlier that the company's long-anticipated IPO is still in the works but would not happen this year.

Funding costs are rising, Bloomberg Intelligence credit analyst Sharon Chen wrote on Wednesday, adding that SoftBank's offshore bonds are trading at wider spreads amid supply concerns and growing exposure to open AI.

She added that the delayed IPO could postpone SoftBank's ability to monetize its open AI stake.

All right, let me translate what Sharon Chen is saying here.

SoftBank's debt is selling at a big discount.

They're talking about wider spreads.

It's seeking to raise a record 1 trillion yen, or about 6.3 billion US dollars, in part to fund its investment commitments to OpenAI.

Sharon Chen from Blue, uh, from Bloomberg Intelligence out with a react that says, "The sale will test retail investor interest amid concerns over both SoftBank's growing AI spending, but its exposure to OpenAI as well." Sharon Chen from BI joins us now.

Um, I want to start with the basics on, on Japanese retail bond market, like why this is a significant story, SoftBank using that mechanism and testing that market.

Yep.

Um, now in the offshore bond market, actually its bonds are trading quite wide, and I think it faces quite weak f- technical support, um, because it is the second largest, um, um, offshore bond issuer from Japan, um, excluding the banks.

So, you know, being a high-yield company, that is quite a large amount of debt outstanding, and, and I think supply risk is also a concern for investors.

Sharon Chen from Bloomberg Intelligence, staying up late for us in Singapore.

Super grateful.