Meta restarts dollar bond issuance, plans to raise at least $20 billion in US and European markets.

November 3 - Meta Platforms is issuing US dollar bonds for the first time in six months as part of its financing plan, with the company planning to raise at least $20 billion in debt across US and European markets. As tech giants face investor skepticism over spending on AI infrastructure, Meta is using debt to fund related investments.

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 the 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 this year, raising $25 billion through a bond sale with investor demand peaking at $96 billion. However, investor enthusiasm for AI-related bonds has since cooled, with investors demanding larger yield premiums from issuers to compensate for the risks they are taking. The bond offering is being underwritten by Citigroup and Morgan Stanley.