Meta plans to issue at least 20 billions of bonds in the US and Europe to finance AI investments.

Meta Platforms is issuing US dollar bonds for the first time in six months as part of its financing plan, with the company planning to issue at least $20 billion in debt in the US and European markets. As the tech giant faces investor skepticism regarding its expenditures on artificial intelligence infrastructure, Meta is funding related investments through borrowing. According to a person familiar with the matter, Meta’s bond issuance is split into five tranches with maturities ranging from 5 to 30 years. The person added that the initial pricing guidance for the longest-dated bonds is about 2.5 percentage points above US Treasury yields. The last time Meta entered the high-grade bond market was this April, when it raised $25 billion through bond sales, with peak investor demand reaching $96 billion. However, since then, investor enthusiasm for AI-related bonds has waned, with investors demanding higher yield premiums to compensate for the risks involved. The bond issuance is being underwritten by Citigroup and Morgan Stanley.