Meta Returns to Dollar Bonds, Plans to Raise at Least $20B in US and European Markets

November 3 — Meta Platforms is issuing dollar-denominated bonds for the first time in six months. As part of its financing plan, the company intends to issue at least $20 billion of debt in the US and European markets. With tech giants facing investor skepticism over spending on artificial intelligence infrastructure, Meta is turning to borrowing to fund those investments.

According to a person familiar with the matter, the offering is split into five tranches with maturities ranging from 5 to 30 years. The person added that initial price guidance on 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, when it raised $25 billion through a bond sale and investor demand peaked at $96 billion. Since then, however, enthusiasm for AI-related bonds has faded somewhat, with investors demanding larger yield premiums to compensate for the risks they bear. The offering is being underwritten by Citigroup and Morgan Stanley.

Meta Platforms (META.O) is seeking to raise $15 billion through the dollar bond issuance.