Meta Resumes Dollar-Denominated Bond Issuance, Plans to Raise at Least $20 Billion in U.S. and European Markets

TechFlow reported on November 3 that Meta Platforms is issuing dollar-denominated bonds for the first time in six months. As part of its funding plan, the company intends to issue at least $20 billion of debt in the U.S. and European markets. As tech giants face investor skepticism over AI infrastructure spending, Meta is financing related investments through debt.

According to a person familiar with the matter, Meta's bond issuance is split into five tranches with maturities ranging from 5 to 30 years. The person added that initial price guidance for the longest-dated tranche is about 2.5 percentage points above U.S. Treasury yields. Meta last entered the investment-grade bond market in April this year, raising $25 billion through bond issuance, with peak investor demand reaching $96 billion. However, market enthusiasm for AI-related bonds has since cooled, and investors have demanded larger yield premiums from issuers to compensate for the risks they bear. This bond issuance is being underwritten by Citigroup and Morgan Stanley. (Jin10)

Source: TechFlow