Meta Launches First Ever Euro Denominated Bond Offering Following $15 Billion US Debt Sale

Meta Platforms has moved toward its first euro-denominated bond sale after raising $15 billion in US debt, as soaring AI infrastructure costs push the company to seek fresh capital globally.

Meta Euro Bond Offering Follows Strong US Debt Demand

Meta Launches First-Ever Euro-Denominated Bond Offering Following $15 Billion US Debt Sale. The sale attracted strong investor demand, with orders reaching $58 billion.

During Tuesday’s sale, investor orders reached nearly 3.9 times the amount sold. The company issued bonds across five maturities, ranging from five to 30 years.

The longest-term bond, maturing in 2056, offered a yield 2.2% above comparable US Treasuries. The spread fell from the initial 2.5%. However, it remained 0.9% higher than a similar bond issued in April.

Meanwhile, Meta’s 10-year bond offered a yield of 6.55%. This was nearly one percentage point above the average yield on AA-rated corporate debt. Yields across all five tranches ranged from 5.85% to 7.53%.

Earlier, Meta launched its Muse Wonder AI models following Muse Spark’s debut this year. The company claimed the models had capabilities comparable to those from OpenAI and Anthropic.

AI Spending Drives Meta’s Expanding Fundraising Plans

Beyond its debt offerings, Meta recently raised $25 billion through common stock and $12.5 billion through preferred shares. The company plans another $60 billion in potential stock sales through an at-the-market program.

Meanwhile, Meta expects capital spending to reach $135 billion to $145 billion this year as it expands computing capacity, raising fresh concerns about its growing AI investment costs.

Over the next three years, Bloomberg Intelligence projects that Meta will invest more than $740 billion and major AI infrastructure firms could together spend nearly $4.5 trillion.

Credit rating firms have been paying attention to the borrowing plans. Last week, S&P Global Ratings lowered Meta’s credit outlook amid concerns about increasing pressure on its balance sheet.

Big Tech Bond Yields Climb as Borrowing Increases

Other technology firms have recently made their way into the debt market to fund infrastructure investments. Oracle raised $10 billion on Monday, while Alphabet secured €6 billion through euro-denominated bonds.

Microsoft last week finished a $25 billion bond sale, bringing an almost three-month hiatus on large technology bond sales to a close.

According to Bloomberg, major technology companies have issued nearly $430 billion in investment-grade bonds globally since last year.

The bond market was trying to discipline them by offering to pay more for their funding, but they were still willing to do so, said Craig Brothers, senior portfolio manager at Bel Air Investment Advisors.

Meta previously raised $25 billion in April through a bond offering that attracted $96 billion in peak investor orders.