Meta begins a $20–25 billion bond sale amid rising SI spending
Prepared by Sintelligent with the help of SI. Published in SI: . Updated: .
SI infrastructure is increasingly financed with debt, and investors are demanding higher yields for such commitments.
According to CNBC, the company expects to raise $20–25 billion, roughly two-thirds in dollars and one-third in euros; TNW reports that the dollar portion is at least $15 billion and that the euro issue will be Meta's first. The 30-year bonds are being discussed at a spread of about 2.5 percentage points over US government debt—almost 0.9 points more than at the early stage of the April sale. Last week, S&P revised Meta's rating outlook to negative because of capital expenditure and negative free cash flow. The company is also raising equity capital to fund SI initiatives.
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