Meta resumes USD-denominated bond issuance, plans to raise at least $20 billion in the US and European markets.

On November 3, Meta Platforms issued US-dollar bonds for the first time in six months. As part of its financing plan, the company intends to issue at least $20 billion in debt in the US and European markets. While tech giants face investor skepticism over expenditures on AI infrastructure, Meta is raising funds through debt to support these investments.

According to a source familiar with the matter, Meta’s bond issuance this time is split into five tranches, with tenors ranging from five to 30 years. The source added that initial pricing guidance for the longest-tenor bonds is approximately 2.5 percentage points above US Treasury yields. Meta last accessed the investment-grade bond market in April, raising $25 billion when peak investor subscription demand reached $96 billion. However, market enthusiasm for AI-related bonds has cooled since then, with investors requiring issuers to offer higher yield spreads to compensate for the risks assumed. This bond issuance is underwritten by Citigroup and Morgan Stanley. (Jinshi)