Meta pays up to borrow $15B as investors grow wary of AI debt

Meta is selling at least $15B of dollar bonds in a deal expected to reach at least $20B with a first euro note, Bloomberg reports. It is offering much higher yields than in April, as investors balk at Big Tech’s flood of AI debt.

Meta is selling at least $15B of US dollar bonds, its first debt sale in six months, Bloomberg reported on Tuesday, citing people familiar with the matter.

The two-currency deal is expected to raise at least $20B in total. It includes Meta’s first euro-denominated note, which could be sold as soon as Wednesday.

Meta is paying more to draw buyers. Its 30-year bonds are being discussed at about 2.5 percentage points above US government debt. That is nearly 0.9 points more than the early pricing on a similar bond Meta sold in April.

“ We see no need to chase it in the new issue market, ” said Ross Pamphilon of Impax Asset Management. He expects Meta and its rivals to keep spending heavily until at least 2027.

Big Tech has sold almost $430B of high-grade bonds since last year. Their bonds now trade at the widest gap over other high-grade debt since 2003. Alphabet paid up for a €6B euro sale on Monday, after Microsoft’s $25B deal last week.

Meta is also selling shares. Last week it priced $25B of common stock and $12.5B of preferred shares, part of its record equity raise.

The bond sale follows S&P’s move on Friday to cut its outlook on Meta’s credit rating over its AI spending.

I am the Editor in Chief for TNW, covering technology not as a parade of launches and valuations, but as a system of influence, persuasion, (show all) I am the Editor in Chief for TNW, covering technology not as a parade of launches and valuations, but as a system of influence, persuasion, and change. I write about startups, venture capital, digital policy, and Europe ecosystem, with an eye on the larger story beneath them: who gets to build the future, who profits from it, and how Europe is learning to speak in a louder voice of its own. Before moving into senior editorial leadership, I've built my career for over +10 years across journalism, storytelling, content strategy, SEO, and digital publishing, with experience in SaaS, hospitality, art, and culture.

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