It is reported that Meta is seeking $25 billion in bond financing to prepare "ammunition" for the AI arms race
According to informed sources, Meta Platforms plans to raise at least $25 billion through a bond issuance. Against the backdrop of significant increases in spending in the artificial intelligence (AI) sector, the company is looking to supplement its cash reserves. The sources indicated that Meta has initiated the marketing process for the dollar bond issuance, which may be divided into up to six varieties, with maturities ranging from 5 to 40 years. The sources further noted that the preliminary pricing for the 40-year variety is approximately 1.4 percentage points above the yield of U.S. Treasury bonds of the same maturity. The funds raised will be used for general corporate purposes. Citigroup and Morgan Stanley are responsible for underwriting this bond issuance. The relevant banks and Meta did not immediately respond to requests for comment
According to informed sources, Meta Platforms (META.US) plans to raise at least $25 billion through a bond issuance. Against the backdrop of significant increases in spending in the artificial intelligence (AI) sector, the company is looking to supplement its cash reserves.
The sources indicated that Meta has initiated the marketing process for the dollar bond issuance, which may be divided into up to six varieties, with maturities ranging from 5 to 40 years.
Furthermore, the sources pointed out that the preliminary pricing for the 40-year variety is about 1.4 percentage points higher than the yield on U.S. Treasury bonds of the same maturity. The funds raised will be used for general corporate purposes.
Citigroup and Morgan Stanley are responsible for underwriting this bond issuance. The relevant banks and Meta did not immediately respond to requests for comment
