Meta attracted up to $58bn of orders for a USD bond offering—roughly four times
the planned at least $15bn deal—while overall cross-border financing is expected
to be at least $20bn. The company plans to price a first eurobond as soon as
Wednesday. Despite strong demand, Meta must pay materially higher yields: a
2056-dated bond is trading about 220bps over U.S. Treasuries, roughly 90bps
wider than similar paper in April. Rising AI investment is lifting funding costs
across big tech; large tech bond spreads are at their widest since 2003 and some
firms’ CDS are near record highs. Analysts expect about $4.5t of AI-related
investment over the next three years, with Meta >$740bn. Meta is also raising
$37.5bn via common and preferred stock and may issue up to $60bn more in shares;
S&P has moved Meta’s rating outlook to negative citing AI spending pressure.
