Bloomberg: Meta targets raising $20 billion through potential bond issuance
Meta considers issuing $20 billion in bonds to fund AI infrastructure expansion
Translated by Qiyas from الجريدة — Original source
Bloomberg News reported on Monday that Meta is seeking to raise at least $20 billion through a potential cross-border bond offering, as the tech giant once again turns to debt markets to fund the expansion of its artificial intelligence infrastructure.
Like many of its competitors in the technology sector, Meta is raising funds through bonds and shares to finance the rapid expansion of its AI infrastructure, although this large-scale spending has increasingly drawn the attention of investors.
Citing sources familiar with the matter, Bloomberg News reported that no final decision has been made yet, and the size of the potential bond offering could increase depending on investor demand.
The report added that Meta’s parent company requested that Citigroup and Morgan Stanley hold calls with investors on Monday and Tuesday.
Meta, Morgan Stanley, and Citigroup had not responded to Reuters’ requests for comment at the time of publication.
Bloomberg News stated that Meta’s potential dollar-denominated bond sale would include maturities ranging from five to 30 years, while the euro-denominated bond offering would range from approximately four years to just over 38 years.
The bond offering report comes about a week after the company announced plans for its largest-ever equity offering, valued at nearly $97.5 billion. The offerings include the sale of shares worth approximately $37.5 billion, priced last week, and plans to raise up to $60 billion later through an at-the-market equity sales program.
Meta also raised $30 billion through a bond offering last year, and in April sold investment-grade bonds worth $25 billion.
The heavy spending on AI infrastructure has negatively impacted Meta’s cash flow, with the company reporting a cash burn of $2.12 billion in the third quarter.
Standard & Poor’s Global Ratings downgraded Meta’s outlook from stable to negative last Friday, citing significant uncertainty surrounding the company’s capital expenditures and free operating cash flow.
