Microsoft to Raise at Least $25 Billion in Its First High-Grade Bond Offering Since 2017

ME News reports that on October 29 (UTC+8), Microsoft (MSFT.O) is launching its first senior bond issuance in over nine years, joining peers in significantly increasing borrowing amid a surge in financing demand driven by the AI investment boom. According to sources familiar with the matter, Microsoft plans to issue benchmark bonds in ten tranches, with maturities ranging from two to 40 years. The initial pricing guidance for the longest-dated tranche, maturing in 2066, is set at a spread of up to 135 basis points above U.S. Treasury yields. Wells Fargo, JPMorgan Chase, and UBS will serve as the lead bookrunners for this bond offering.
According to insiders, the proceeds will be used for general corporate purposes, including capital expenditures. This offering ends Microsoft’s long hiatus from the bond market, with its previous issuance of investment-grade bonds occurring in 2017, when it raised $17 billion through seven separate tranches. According to the latest reports, Microsoft plans to raise at least $25 billion through its U.S. bond offering. (Source: ODAILY)