Meta restarts US dollar bond issuance, plans to raise at least $20 billion in the U.S. and European markets.
55 minutes ago
Meta Platforms is issuing dollar-denominated bonds for the first time in six months as part of its financing plan, with the tech giant targeting to raise at least $20 billion in debt across U.S. and European markets. Amid investor skepticism over its artificial intelligence (AI) infrastructure spending, Meta is tapping debt to fund related investments. According to a person familiar with the matter, the bond offering is split into five tranches, with maturities ranging from 5 to 30 years. The source added that preliminary pricing guidance for the longest-dated bonds is around 2.5 percentage points above U.S. Treasury yields. Meta’s last entry into the high-grade bond market came in April this year, when it raised $25 billion via a bond sale, with investor demand peaking at $96 billion. However, market enthusiasm for AI-linked bonds has cooled since then, with investors demanding larger yield premiums from issuers to compensate for the risks they bear. The bond offering is underwritten by Citigroup and Morgan Stanley.
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