Meta weighs at least $20 billion bond sale as AI spending faces more scrutiny

Meta tests the debt market

Meta Platforms is weighing a bond issuance of at least $20 billion to test investor appetite for its obligations, with doubts mounting over the speed of AI outlays. The company has asked investor calls with Citigroup and Morgan Stanley to hold for Monday and Tuesday; no transaction has been approved yet and the size may increase if demand warrants, people with knowledge of the situation said.

If it proceeds, this would be Meta's first sizable bond offering in six months and its debut in euros, following Alphabet and Amazon in diversifying funding across currencies. U.S.-dollar tranches might run 5 to 30 years, and the euro pieces could carry maturities starting a bit above 4 years and reaching slightly beyond 38 years. Meta met European investors last month on a non-deal roadshow. Spokespeople at Morgan Stanley and Citigroup would not comment on the potential size, and Meta did not immediately respond to requests for comment.

A colder climate than April

In April, Meta raised $25 billion in high-grade bonds, drawing as much as $96 billion of peak demand. Since then, appetite for AI-themed debt has cooled, with buyers asking for bigger concessions to take the risk.

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You can see it in comps. On Monday, Alphabet offered markedly higher yields to complete a €6 billion ($6.7 billion) sale than it did earlier this year, and Oracle is marketing elevated new-issue concessions as it seeks $10 billion in the US dollar market. Meanwhile, the cost to insure the debt of several large US tech firms against default has climbed to record highs, signaling growing investor unease.

Why the supply keeps coming

Tech giants have issued hundreds of billions since last year to build data centers and secure chips, and the bill is prompting fresh questions about eventual returns. Meta is also mounting one of the largest equity financings on record to help fund those AI ambitions, having priced $25 billion of common stock last week, raised $12.5 billion from preferred shares, and aims to collect up to $60 billion using an at-the-market share sale program.

The bottom line for investors

If Meta moves ahead, how it splits dollars and euros, and how long it goes, will be a clean read on demand for long-dated Big Tech credit. Softer interest in AI-linked deals and pricier credit protection point to a more selective primary market where issuers pay up to print size.

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