FAB backs SoftBank’s USD 40 bn loan to OpenAI

FAB is taking a nearly USD 1 bn share of Japanese bank SoftBank’s USD 40 bn bridge loan backing its OpenAI investment, Bloomberg reports, citing people familiar with the matter. The UAE’s largest lender is joining 21 new lenders, who are allocated around USD 7 bn of the facility, alongside GIC and Standard Chartered, which also each took nearly USD 1 bn.

Why it matters: This gives FAB exposure to one of the biggest debt packages tied to the AI boom. The 12-month loan is one of its kind for the Asia-Pacific region and is likely to result in over USD 100 mn in fees for underwriters. SoftBank’s commitments to OpenAI now exceed USD 60 bn — OpenAI was valued at USD 852 bn in a March fundraising round.

ICYMI- UAE capital is already circling SoftBank’s wider portfolio: Adia is planning to invest in SoftBank subsidiary PayPay’s US listing alongside Qatar Holding and Visa, with the trio expected to put in more than USD 200 mn. SoftBank is also working alongside G42 on part of the planned 5 GW US-UAE data-center cluster, alongside Cisco, Nvidia, OpenAI, and Oracle.

Watch this space: The loan could still be syndicated further, with the remaining USD 33 bn held by underwriters and senior lenders. Nine lenders had already shown interest in the facility before broader syndication in May, though some bankers have raised concerns over SoftBank’s exposure to OpenAI as competition from rivals including Anthropic grows.