Meta sells first bonds in euros, raises €9 billion
Big tech firms press on with fund-raising, even as doubts surface over the strength of the AI boom.
On November 4, Meta Platforms, the parent company of Facebook, issued its first bond denominated in euros, raising €9 billion ($13 billion), according to a lead manager memo seen by Reuters. The multi-tranche bond sale spanned maturities from four to 38 years. This move comes as big tech firms continue to raise funds, even amid doubts about the strength of the AI boom.
The sale of bonds in foreign currencies allows companies to hedge currency risk and take advantage of lower borrowing costs in markets like Europe. Meta's shares gained around 2% in early trading on November 4 in New York. The bond sale was handled by Citigroup and Morgan Stanley, who served as the bookrunners. The move adds to a wave of AI-related fundraising as companies seek capital for data centers, computing capacity, and cloud expansion.
Notably, Meta is the second major tech company to tap European bond markets in the past week, following Alphabet, Google's parent company, which sold €6 billion worth of bonds on November 2. Despite the recent regulatory concerns surrounding the rapid growth of the AI sector, Meta's bond sale took place amidst a Democrats' sweep in the November 3 US midterm elections.
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