Meta's U.S. dollar bonds receive $58 billion in subscriptions; plans to issue Euro-denominated bonds as early as Wednesday

According to informed sources, Meta Platforms (META.US) attracted subscription orders totaling up to $58 billion for its US dollar bond issuance, approximately four times the issuance size of at least $15 billion. The overall cross-border financing scale is expected to be at least $20 billion, and Meta plans to issue its first euro bond as early as Wednesday. Despite strong demand, Meta still needs to offer higher yields to attract investors; its bonds maturing in 2056 yield a premium of about 2.2 percentage points over US Treasuries, around 0.9 percentage points higher than similar bonds issued in April this year. The expansion of AI investments is driving up financing costs for tech giants, with the yield premium on large tech company bonds rising to the highest level since 2003. The cost of some corporate credit default protection is also near historical highs. Analysts estimate that relevant companies' AI investments will reach $4.5 trillion over the next three years, with Meta accounting for over $740 billion. Meta has also raised $37.5 billion by issuing common and preferred shares, and plans to issue up to $60 billion more in stock; S&P has downgraded its rating outlook to negative due to pressure from AI spending.