Meta Targets $20 Billion via Bond Issuance

Meta is seeking to raise at least $20 billion through a potential cross-border bond offering, as the tech giant turns once again to debt markets to fund the expansion of its artificial intelligence infrastructure. According to Bloomberg, Meta, like many of its competitors in the technology sector, is raising capital through bonds and shares to finance the rapid expansion of its AI infrastructure. Although this massive spending has now drawn increasing attention from investors, Bloomberg News reported, citing sources familiar with the matter, 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, Facebook, has requested that Citigroup and Morgan Stanley hold calls with investors. 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 slightly more than 38 years. The bond offering report comes about a week after the company announced plans for its largest stock offering in history, 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 sold investment-grade bonds in April 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.