Meta sells first bonds in euros, raises €9 billion - The Straits Times
FILE PHOTO: Meta's logo and a keyboard are shown in this illustration created on October 19, 2026. REUTERS/Dado Ruvic/Illustration/File Photo
LONDON - Meta Platforms on Nov 4 sold its first bonds denominated in euros, a lead manager memo seen by Reuters showed, with big tech firms pressing on with fund-raising, even as doubts surface over the strength of the AI boom.
The multi-tranche bond sale raised €9 billion (S$13 billion), the IFR news service reported.
Maturities for the bond sale ranged from four to 38 years, the memo seen earlier in the day by Reuters showed.
Meta on Nov 3 raised US$15 billion (S$19 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 sale adds to a wave of AI-related fund-raising as companies seek capital for data centres, computing capacity and cloud expansion, despite historically relying on strong cash balances to fund growth.
Meta is the second big tech company to tap European bond markets this week. Google parent Alphabet on Nov 2 sold €6 billion worth of bonds in a sale that garnered strong demand, with an order book that topped €17 billion.
Concerns about the financing required to support heavy spending on artificial intelligence, and the returns needed to justify that investment, have weighed on technology stocks and bonds in recent weeks. The tech-heavy Nasdaq fell 5% in October.
Meta’s bond sale also took place against the backdrop of the Democrats’ sweep in the Nov 3 US midterm elections, which has fuelled fears that rapid AI sector growth could be hamstrung by regulatory scrutiny.
Issuing debt in foreign currencies also allows companies to hedge the currency risk from their global assets, while taking advantage of relatively lower borrowing costs in markets like Europe.
Europe’s deep capital markets offer an attractive source of funding.
Meta’s shares were up about 2% on the morning of Nov 4 in New York.
Citi and Morgan Stanley were the bookrunners, according to the memo and IFR. REUTERS
