Microsoft expects to raise $25 billion in US bond sale, sources say

Microsoft is set to raise approximately $25 billion through its first US investment-grade bond sale in over nine years, according to sources familiar with the matter. The bond sale would make Microsoft the latest technology company to tap into debt markets to fuel its AI ambitions, with over $100 billion in orders, or four times the size of the offering, one source said.

Bloomberg News first reported the development, and Microsoft is selling the debt in up to 10 tranches, with maturities ranging from 2 to 40 years. The bond offering, managed by Wells Fargo, JPMorgan Chase, and UBS Group AG, has not yet been finalized, and Microsoft may adjust the size based on demand. The company's CFO, Amy Hood, previously stated that Microsoft would explore additional funding sources when it deemed appropriate, citing the need to preserve cash flows and financial flexibility. Shares of Microsoft fell by 0.7% in afternoon trading following the news.