Microsoft is selling at least $25 billion of bonds, its first such issue in the US since 2017
Prepared by Sintelligent with the help of SI. Published in SI: . Updated: .
Microsoft is borrowing on the bond market to pay for building capacity for SI.
According to Bloomberg, as relayed by The Next Web, Microsoft is offering at least $25 billion of bonds: up to 10 tranches with maturities from 2 to 40 years, with Wells Fargo, JPMorgan Chase and UBS as organizers. The previous large US issue was in January 2017, $17 billion, partly to fund the LinkedIn acquisition. The company's rating is AAA. Per its quarterly report, spending on data centers and equipment including leases reached $45.2 billion, free cash flow fell 27% to $18.6 billion, and Azure revenue rose 48% to $33.2 billion. Chief financial officer Amy Hood said demand still exceeds supply.
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