Lates News

Meta Platforms is issuing dollar bonds for the first time in six months as part of its financing plan, with the company planning to raise at least $20 billion in debt across U.S. and European markets. As tech giants face investor skepticism over spending on artificial intelligence infrastructure, Meta is turning to debt to fund related investments. According to a person familiar with the matter, Meta's bond offering is divided into five tranches with maturities ranging from 5 to 30 years. The person added that initial pricing guidance for the longest-dated bonds is about 2.5 percentage points above U.S. Treasury yields. Meta last entered the high-grade bond market in April of this year, when it raised $25 billion through a bond sale, with investor demand peaking at $96 billion. However, enthusiasm for AI-related bonds has since cooled, with investors demanding larger yield premiums from issuers to compensate for the risks they bear. The bond offering is being underwritten by Citigroup and Morgan Stanley.