Odaily Planet Daily report: Microsoft (MSFT.O) is making its first high-grade bond issuance in over nine years, joining peers in significantly increasing borrowing as AI investment enthusiasm drives a surge in financing demand. According to people 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 up to 135 basis points above U.S. Treasury yields. Wells Fargo, JPMorgan Chase, and UBS will manage the 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 raising funds in 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 a U.S. bond offering.