SoftBank’s latest margin loan upgrade SoftBank Group Corp. has expanded the value of its margin loan, secured by shares of its chip‑design unit Arm Holdings Plc, to $25 billion. The move, announced this month after a renegotiated deal with creditors, is part of the conglomerate’s strategy to raise capital for its growing portfolio of artificial‑intelligence (AI) ventures.
How the loan has grown The margin facility began in 2023 at $8.5 billion. It was increased to $13.5 billion in 2024 and then to $20 billion last year. With the latest $5 billion bump, the loan now sits at $25 billion. SoftBank has already drawn $20 billion from the facility as of December, and the loan is scheduled to mature in September 2027.
The loan is collateralised by 769 million shares of Arm, representing a 72 % stake in the chip designer. SoftBank owns almost 90 % of Arm, giving it a substantial equity cushion. The interest rate on the loan is about 225 basis points above the Secured Overnight Financing Rate, with an additional 25‑basis‑point credit adjustment spread.
Why the upgrade matters SoftBank’s founder, Masayoshi Son, has been pouring billions into AI. The conglomerate’s most visible commitment is a nearly $65 billion stake in OpenAI, the maker of ChatGPT. In addition, SoftBank has recently acquired ABB’s industrial robotics business for $5.4 billion and the data‑center‑focused private‑equity firm DigitalBridge for roughly $3 billion.
To finance these deals, SoftBank has been shifting from short‑term loans to longer‑dated debt, a move that strengthens its balance sheet and reduces refinancing risk. Earlier this week, the company repaid the entire $25.9 billion balance of a $40 billion one‑year loan that had funded its OpenAI investment.
Market reaction and lender demand Arm’s share price has surged 142 % this year, creating a favourable environment for margin‑loan expansion. SoftBank initially sought an increase of $3 billion to $5 billion but received demand of about $7 billion from lenders. The company could raise the loan further if Arm shares continue to climb.
SoftBank’s aggressive funding strategy is mirrored by other tech giants such as Oracle and Meta, which are also investing heavily in AI infrastructure. However, investors are increasingly wary of the uncertain revenue prospects of these multibillion‑dollar projects.
Looking ahead SoftBank’s AI ambitions include building 8.8 GW of data‑center capacity across the United States and a 5‑GW facility in France. The company’s US unit, SB Energy, estimates that the US data‑center expansion will require $174 billion in capital spending.
In the coming months, SoftBank may seek to further expand its margin loan if Arm’s share price remains robust. Additionally, the company is in talks with Apollo Global Management to potentially increase a $5.4 billion loan to $9 billion to support its OpenAI stake.