Meta Platforms launched its first euro-denominated bond sale on Wednesday, marking another major fundraising move by a leading technology company as the industry continues to invest heavily in artificial intelligence, despite growing questions over the sustainability of the AI boom, according to a lead manager memo reviewed by Reuters.
The company has opened order books for the multi-tranche bond offering, with maturities ranging from four to 38 years, the memo stated.
The move follows Meta’s announcement on Tuesday that it plans to raise $15 billion through a five-part US dollar bond sale. The Facebook parent is increasingly turning to debt markets to finance its rapidly expanding investments in AI infrastructure.
The latest offering reflects a broader wave of AI-driven borrowing as technology companies seek funding for data centres, computing capacity, and cloud infrastructure. This marks a shift for major tech firms, which have traditionally relied on substantial cash reserves to finance their expansion.
Meta is the second major technology company to access European bond markets this week. Alphabet, Google’s parent company, raised €6 billion ($6.74 billion) on Monday, attracting strong investor interest, with orders exceeding €17 billion.
However, concerns over the scale of investment required to support artificial intelligence development and the potential returns on that spending have put pressure on technology stocks and bonds in recent weeks. The technology-heavy Nasdaq declined 5% in October.
Meta’s bond sale also comes amid a changing US political landscape following the Democrats’ strong performance in Tuesday’s midterm elections, raising concerns that increased regulatory scrutiny could affect the rapid expansion of the AI industry.
Issuing bonds in foreign currencies also enables companies to manage currency exposure linked to their international assets while potentially securing more favourable borrowing costs in markets such as Europe. The region’s deep and established capital markets continue to offer an attractive funding source for global businesses.
Meta shares were broadly unchanged on Europe’s Tradegate trading platform on Wednesday ahead of the US market opening.
Citi and Morgan Stanley are managing the bond offering as bookrunners, according to the memo.
Click here for more on Business
