Meta eyes at least US$20 billion from potential bond offerings

CALIFORNIA – Meta Platforms is eyeing at least US$20 billion (S$25.6 billion) from a potential cross-border investment-grade bond offering as the tech giant gauges investor interest in its debt amid growing scepticism about the pace of spending on artificial intelligence.No final decision has been made on the offering, and the size may still grow depending on investor demand, according to people familiar with the matter.The firm has asked Citigroup and Morgan Stanley to hold investor calls on Nov 2 and Nov 3, the people said, asking not to be identified because they are not authorised to speak publicly. That would mark Meta’s first major debt sale in six months and its debut offering in euros, as it follows rivals Alphabet and Amazon in diversifying its funding across different currencies.The company spoke to investors in Europe in October as part of a non-deal roadshow.Representatives for Morgan Stanley and Citigroup declined to comment on the potential deal size. Meta did not immediately respond to requests for comment.Tech giants have flooded the market with hundreds of billions of dollars in borrowing to fund new data centres and chip purchases since 2025, raising questions about whether the spending will pay off.The cost to protect the debt of several US technology heavyweights against default has hit fresh record highs, reflecting growing investor unease.Meta’s potential dollar bond sale will span maturities of five to 30 years, while the euro offering will range from just over four years to just over 38 years, the person added. The company last tapped the high-grade bond market in April, when it raised US$25 billion through a deal that attracted US$96 billion of investor demand at its peak.Appetite for AI-related offerings have since faded, with buyers demanding more concessions to take on the risk. On Nov 2, Alphabet offered investors considerably higher yields to push through a €6 billion (S$8.6 billion) bond deal than in a transaction earlier 2026.Meanwhile, Oracle is also pitching elevated new-issuance concessions to raise US$10 billion in the US dollar bond market. Meta is also staging one of the largest equity offerings in history as part of efforts to finance its AI ambitions.The firm last week priced US$25 billion of common stock and raised US$12.5 billion from an offering of preferred shares.It also plans to raise as much as US$60 billion through an at-the-market share sale programme, which allows companies to periodically sell shares in the open market. BLOOMBERG