Meta looks to raise at least US$25 billion from bond sale

(Oct 30): Meta Platforms Inc aims to sell at least US$25 billion of investment-grade bonds on Thursday, according to people familiar with the matter, borrowing money as technology companies invest heavily in infrastructure for artificial intelligence.

The firm is looking to issue notes in as many as six parts, ranging from five to 40 years in length, according to one person, who also asked not to be identified as they’re not authorized to speak publicly. Initial price talk for the 40-year bond is a yield of about 1.4 percentage point more than benchmark Treasuries, the person said. Proceeds are set to go toward general corporate purposes.

This year’s largest investment-grade note sale was the US$26 billion raised in March by Mars Inc for its purchase of Kellanova.

Meta is infusing artificial intelligence services into its key products, including Facebook and Instagram. To fuel those offerings, it needs to invest in data centers and other key infrastructure. Meta is separately raising about US$30 billion for a data center in rural Louisiana, in a deal with Blue Owl Capital Inc and Pacific Investment Management Co.

Citigroup Inc and Morgan Stanley are managing Thursday’s bond sale. Citi declined to comment, while Morgan Stanley and Meta didn’t immediately respond to requests for comment.

Uploaded by Lam Seng Fatt

Meta looks to raise at least US$25 billion from bond sale

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