Meta's dollar bond offering drew up to $58 billion in orders, but financing costs rose significantly compared with April.

November 4 - According to people familiar with the matter, Meta Platforms' (META.O) dollar bond issuance attracted up to $58 billion in subscription orders, about 4 times the offering size of at least $15 billion, with the overall cross-border financing scale expected to be at least $20 billion, and it plans to issue its first euro bond as early as Wednesday. Despite strong subscription demand, Meta still needs to offer higher yields to attract investors, with the yield on its 2056 maturity bonds at a premium of about 2.2 percentage points over U.S. Treasuries, about 0.9 percentage points higher than similar bonds in April this year.

AI investment expansion has pushed up financing costs for tech giants, with bond yield premiums for large technology companies rising to the highest level since 2003, and credit default protection costs for some companies near historic highs. Analysts expect AI investment by related companies to reach $4.5 trillion over the next three years, with Meta exceeding $740 billion. Meta has also raised $37.5 billion through ordinary and preferred stock offerings and plans to issue up to $60 billion more in shares; S&P has downgraded its rating outlook to negative due to AI spending pressure.