Meta raises US$15 billion in bond sale to fund AI expansion
Meta Platforms is raising US$15 billion through a five-part US dollar bond offering to finance AI infrastructure investments. The sale follows a US$25 billion bond issue in April and a US$30 billion offering last year, as the company increases external financing for AI-related capital expenditure.
Meta Platforms said on Tuesday it is raising US$15 billion (HK$117 billion) through a five-part US dollar bond offering, as the Facebook parent turns to debt markets to help finance accelerating investments in AI infrastructure.
The offering adds to a wave of AI-related fundraising as companies seek capital for data centres, computing capacity and cloud expansion, despite historically relying on strong cash balances to fund growth.
It comprises US$3.25 billion of notes due in 2031 carrying a 5.85 per cent coupon and another US$3.25 billion due in 2033 at 6.25 per cent, according to a regulatory filing. Meta previously tapped debt markets with a US$25 billion investment-grade bond sale in April and a US$30 billion offering last year, underscoring its growing use of external financing to fund long-term AI investments.
The debt sale comes days after Meta expanded plans for what could become a US$97.5 billion equity raise, highlighting the scale of funding the company is seeking for AI infrastructure. Meta has said it expects capital expenditure of US$135 billion–US$145 billion this year, largely driven by AI investments.
Moody's assigned the new debt an Aa3 rating, saying it expects Meta to maintain conservative financial policies and a positive net cash position despite rising AI spending. Meta's total debt stood at US$83.67 billion as of 30 September, according to data compiled by LSEG.