Meta prepares dollar and euro bond sale to fund AI spending
The planned borrowing follows S&P’s decision to lower Meta’s credit outlook to negative. The size of the bond offering has not been disclosed.
Meta is planning a bond offering denominated in dollars and euros to help finance its AI spending, Bloomberg reported, citing a person with knowledge of the plans. Citigroup and Morgan Stanley have been asked to arrange investor calls.
The preparations come after S&P changed the outlook on Meta’s AA- credit rating to negative. The ratings agency said Meta had fewer options than its competitors for generating revenue from AI.
The potential offering could comprise five portions of dollar debt and six portions of euro debt. No amount has been disclosed. Reports in September indicated that Meta was preparing for its first borrowing in Europe’s bond market in the autumn.
Meta also began a US$35 billion share sale and issued US$25 billion in bonds in April. Separately, Alphabet launched a €6 billion euro bond offering, attracting orders exceeding €17 billion.
