Meta raises US$15 billion in five-part US bond sale to fund AI expansion
The debt sale comes days after it expanded plans for what could become a US$97.5 billion equity raise
Meta Platforms announced on Tuesday that it is raising $15 billion through a five-part US dollar bond offering to fund its expanding AI infrastructure. This follows the company's recent plans to raise an additional $97.5 billion through equity. The bond sale includes $3.25 billion in notes due in 2031 with a 5.85% coupon, and another $3.25 billion due in 2033 at a 6.25% interest rate.
These transactions are part of a broader trend among companies looking to raise capital for AI-related investments, despite traditionally relying on strong cash reserves. Meta's previous debt offerings include a $25 billion investment-grade bond sale in April and a $30 billion offering last year. The company has earmarked capital expenditures of $135 billion to $145 billion this year, primarily for AI projects.
Moody's has assigned the new debt an Aa3 rating, projecting that Meta will maintain conservative financial practices and a positive cash position even as AI spending increases. As of September 30, Meta's total debt amounted to $83.67 billion.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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