Meta Reportedly Plans To Raise $20B From Its Cross-Border Bond Sales, Including Debut Euro Offering

• Meta Platforms Inc. is targeting at least $20 billion in a multi-currency investment-grade bond deal to gauge market appetite amid climbing skepticism over AI expenditures. 
• The company tapped Citigroup Inc. and Morgan Stanley to coordinate investor discussions for a transaction that will mark its first major debt issuance in six months and its maiden euro-denominated offering. 
• Maturity schedules for the potential issuance span five to 30 years for dollar-denominated notes and roughly four to 38 years for the euro tranche. 

Meta Platforms (META) is exploring a substantial cross-border debt package of about $20 billion to fund its ongoing operations and capital needs, Bloomberg reported. 

However, the report noted that final sizing has not been locked in and could expand based on active investor participation.

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To kick off the process, the social media titan enlisted financial institutions Citigroup (C) and Morgan Stanley (MS) to lead investor discussions. The upcoming move follows a non-deal European roadshow held by the company last month, setting the stage for its first major debt transaction since April and its inaugural entry into the European bond market.

Surging AI Spending

The aggressive capital raise comes amid a broader wave of heavy borrowing by major technology firms. Over the past year, tech giants have rushed to raise hundreds of billions of dollars to construct data centers and buy advanced semiconductors. However, this heavy spending cycle has triggered anxiety regarding long-term financial returns.

Market unease is increasingly visible, with the cost of protecting prominent US technology debt against default reaching new peaks. Meta's proposed structure features dollar-denominated maturities ranging from five to 30 years, alongside euro notes stretching from just over four years to nearly 38 years.

Investor appetite for technology credit has visibly cooled since April when Meta previously tapped the high-grade market for $25 billion amid heavy demand, forcing issuers to offer sweeter terms. Peers like Alphabet Inc. (GOOG, GOOGL) and Oracle Corp.(ORCL) have recently had to offer elevated yields and new-issuance concessions to attract buyers for multi-billion-dollar deals.

Beyond debt markets, Meta has aggressively tapped equity channels to support its ambitious artificial intelligence roadmap. The company recently priced $25 billion in common stock, secured $12.5 billion through preferred shares, and outlined plans to pull in up to $60 billion via an at-the-market equity distribution program.

META Stock: Retail View 

Retail sentiment on Stocktwits was ‘bearish’ with ‘normal’ message volumes. 

META stock has lost about 6% year-to-date. 

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