November 2 (Reuters) – Meta (META.O) is considering a return to the debt market—potentially through a cross-border bond issuance—to raise at least $20 billion, according to a Bloomberg News report on Monday. The funds would be used to support the development of its artificial intelligence infrastructure.
Like many of its tech rivals, Meta has been rapidly expanding its AI infrastructure through a mix of debt and equity financing—a strategy that has drawn significant investor scrutiny, given the massive scale of the spending involved.
According to a Bloomberg News report citing people familiar with the matter, no final decisions have been made, and the potential size of the debt issuance could increase depending on investor demand.
Facebook’s parent company has engaged Citigroup and Morgan Stanley; the report also notes that investor calls are scheduled for Monday and Tuesday.
Meta, Morgan Stanley, and Citigroup did not immediately respond to requests for comment from Reuters.
As reported by Bloomberg, Meta’s potential U.S. dollar-denominated bond issuance would have maturities ranging from 5 to 30 years, while its euro-denominated bonds would span from approximately 4 years to over 38 years.
This report on the debt issuance comes about a week after the company announced plans for what would be its largest-ever equity offering, totaling approximately $97.5 billion. This includes a stock sale—priced last week—valued at roughly $37.5 billion, alongside a subsequent plan to raise up to $60 billion through an “at-the-market” equity offering program.
Last year, Meta raised $30 billion through bond issuances, and in April of this year, it sold $25 billion worth of investment-grade bonds.
Heavy spending on artificial intelligence infrastructure has put pressure on Meta’s cash flow; the company reported a cash burn of $2.12 billion for the third quarter.
On Friday, S&P Global Ratings revised its outlook on Meta from “stable” to “negative,” citing significant uncertainty regarding the company’s capital expenditures and free operating cash flow.
Meanwhile, according to a memo from a manager involved in the deal, competitor Alphabet (GOOGL.O) is set to sell €6 billion ($6.72 billion) in bonds on Monday.
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