Meta Issues Its First Euro Bond Sale as US Bond Offering Draws $58 Billion in Orders

At a glance

Meta has started selling euro-denominated bonds for the first time, following its US bond sales, to cover the large costs of AI infrastructure. Orders for the US bonds reached about 3.9 times the amount issued.

Key points

1. 1

   Meta issued $15 billion in US bonds, and orders totaled $58 billion.

2. 2

   The bonds come in five maturities, from 5 to 30 years, with interest rates of 5.85% to 7.53%.

3. 3

   Meta also raised $25 billion in common stock and $12.5 billion in preferred stock.

4. 4

   Capital expenditures (money spent on facilities and equipment such as factories and hardware) this year are expected to be between $135 billion and $145 billion.

Why it matters

As spending on AI grows, big tech companies are borrowing large sums of money, and markets and credit rating agencies are watching this closely.