Odaily Planet Daily reports: Meta Platforms has issued U.S. dollar-denominated bonds for the first time in six months as part of its financing plan, aiming to raise at least $20 billion in debt across U.S. and European markets. Amid investor scrutiny over spending on AI infrastructure, Meta is leveraging debt financing to fund these investments.
According to a person familiar with the matter, Meta’s bond offering is divided into five tranches with maturities ranging from five to 30 years. The person added that the initial pricing guidance for the longest-duration bonds is approximately 250 basis points above U.S. Treasury yields. Meta last entered the investment-grade bond market in April this year, raising $25 billion through a bond issuance, with peak investor demand reaching $96 billion. However, since then, investor enthusiasm for AI-related bonds has cooled, with investors demanding higher yield premiums from issuers to compensate for the associated risks. This bond offering is being underwritten by Citigroup and Morgan Stanley. (Jinshi)