Tuesday, 02 January 2024 12:17 GMT

Meta Plans To Raise $25 Billion Through Bond Sale Amid Rising AI Spend: Report


(MENAFN- AsiaNet News)

Meta Platforms (META) is reportedly preparing to raise at least $25 billion through a multi-part bond sale, following disclosures of a sharp increase in AI-related spending during its third-quarter earnings. 

The offering, according to Bloomberg, citing people familiar with the matter, could include notes ranging from five to 40 years in maturity. Initial price indications for the 40-year note are around 1.4 percentage points above U.S. Treasuries. 

Proceeds from the sale are intended for general corporate purposes. Citigroup Inc. and Morgan Stanley are reported to be managing the bond issuance.

The reported bond announcement comes after analysts cut price targets and ratings for Meta on Thursday, citing the company's forecast of significant expense growth in 2026. Investors have been closely monitoring the impact of Meta's expanding AI initiatives, which are driving increased capital expenditures and research and development costs. 

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