Meta Platforms Inc. has shattered European corporate bond records by drawing an unprecedented €53 billion ($59.7 billion) in investor demand for its debut euro-denominated debt offering.
The response surpasses the previous European record set by Anheuser-Busch InBev NV in 2016, as Meta seeks to raise up to €9 billion to fund its expanding artificial intelligence investments.
The offering comes amid a massive wave of Big Tech debt issuance, following a recent $58 billion dollar-bond sale by the Facebook parent and similar multi-billion-dollar moves by peers like Microsoft, Oracle, and Alphabet.
To attract buyers amid mounting investor caution over heavy AI spending and data center expansion, Meta priced its euro bonds significantly wider than other hyperscalers.
Consequently, its yields align more closely with lower-rated single-A borrowers despite Meta’s double-A credit rating.
Analysts note that while these generous yields and increasing scrutiny, compounded by recent shifts in US political dynamics following the midterms reflect growing unease over future funding requirements, the tech giants’ historically low legacy borrowing costs still provide substantial financial flexibility.
