Meta Platforms is set to issue investment - grade bonds with a value of at least $25 billion. This strategic move follows closely on the heels of a statement made by its CEO, Mark Zuckerberg, just a day prior. Zuckerberg announced that the company would ramp up its investment in artificial intelligence over the coming year.
The magnitude of this bond offering is anticipated to rank among the largest in 2025. For context, the largest investment - grade bond issuance so far this year was Mars' $26 billion bond issued in March. Meta has laid out plans to issue these bonds in six distinct tranches, with maturity periods spanning from 5 to 40 years.
In terms of pricing, the initial offering for the 40 - year bonds indicates a yield that is approximately 1.4 percentage points higher than that of benchmark U.S. Treasuries. The proceeds from this bond issuance will be earmarked for general corporate use.
Citigroup and Morgan Stanley have been entrusted with the task of managing this bond issuance. However, both institutions have chosen to remain tight - lipped, declining to offer any comments. Similarly, Meta has not responded to requests for comment on this matter.
