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BANKING AND INSURANCE

Meta is all set to raise $10 billion in bond debut

Meta is all set to raise $10 billion in bond debut
The Siliconreview
05 August, 2022

Meta has started working earnestly on the offering over the last couple of months

Facebook-parent Meta Platforms Inc. is all set to raise $10 billion in its first-ever bond offering. According to two sources close to the deal, the company looks to fund share buybacks and investments to revamp its business. The sources said that the offering included bonds with maturities ranging from five years to 40 years and received over $30 billion of orders from investors. They added the demand was skewed towards the longer-dated bonds. Meta has not yet responded to a request for comment.

Among the big technology companies, Meta is the only one that did not have debt on its books. Tapping the market at present would help it build a more traditional balance sheet. The sources said that it could give it more financial room as it tries to fund a few expensive projects, such as its Metaverse virtual reality and Reels short video product when its cash pile is depleting. The sources said Meta started working earnestly on the offering over the last couple of months. The sources said that a recent resurgence in corporate bond markets over the past month after a slump earlier this year gave Meta a window to tap the market now.