Meta looks to raise up to USD25bn via bond sale: Bloomberg
WASHINGTON: Meta Platforms is looking to sell between USD20 billion and USD25 billion of investment-grade bonds, Bloomberg News reported on Thursday, as the social media giant ramps up investments in artificial intelligence infrastructure.
The news follows a USD30 billion bond sale last year that was Meta’s biggest ever. Like big tech rivals, Meta is increasingly tapping debt to fund its AI ambitions after for years relying on strong cash flows to fund expansion into new technologies.
A day earlier, it had raised its 2026 capital expenditure forecast by USD10 billion to a range of USD125 billion to USD145 billion. Overall, Big Tech is now expected to spend more than USD700 billion on AI infrastructure this year.
But the companies’ growing appetite for debt has worried analysts and experts who have warned about a growing number of circular deals in the AI industry.
Meta had filed for a bond sale comprising six tranches earlier on Thursday, without disclosing the size.
Initial price discussions for the longest portion of the deal, a note maturing in 2066, are for a yield of as much as 1.8 percentage point more than Treasuries, Bloomberg News reported, citing people with knowledge of the transaction.