Meta Restarts Dollar Bond Issuance, Plans to Raise at Least $20 Billion in US and European Markets

Odaily Sees: Meta Platforms is issuing dollar bonds for the first time in six months, planning to raise at least $20 billion in debt across US and European markets as part of its financing plans. Meta is turning to debt to fund related investments as the tech giant faces investor scrutiny over its spending on artificial intelligence infrastructure.

According to a person familiar with the matter, Meta's bond offering is divided into five tranches with maturities ranging from 5 to 30 years. The person added that initial pricing guidance for the longest-dated bonds is about 2.5 percentage points above US Treasury yields. Meta last entered the high-grade bond market in April of this year, when it raised $25 billion through a bond sale, with investor demand peaking at $96 billion. Since then, however, enthusiasm for AI-related bonds has cooled somewhat, with investors demanding larger yield premiums from issuers to compensate for the risks they bear. The bond issuance is being underwritten by Citigroup and Morgan Stanley. (Jinshi)