The proposed debt sale could increase in size depending on investor demand, although no final decision has been made, Reuters reported.
The Facebook and Instagram parent has asked Citigroup and Morgan Stanley to hold investor calls on Monday and Tuesday, Bloomberg reported. Meta, Citigroup and Morgan Stanley did not immediately respond to Reuters’ requests for comment.
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The potential offering would include dollar-denominated bonds with maturities ranging from five to 30 years. The euro-denominated portion would have maturities ranging from around four years to slightly more than 38 years, according to Bloomberg.
The reported plans come as Meta and other major technology companies turn to debt and equity markets to finance the rapid expansion of AI infrastructure. However, the scale of their spending has drawn increased scrutiny from investors concerned about the impact on cash flow and future returns.
About a week earlier, Meta announced plans for equity offerings totaling approximately $97.5 billion. The plans include about $37.5 billion in stock sales priced last week and a proposed at-the-market share-sale program that could raise up to $60 billion over time.
Meta raised $30 billion through a bond offering last year and sold another $25 billion in investment-grade bonds in April.
The company’s AI investment has put pressure on its cash flow. Meta reported a cash burn of $2.12 billion in the third quarter.
On Friday, S&P Global Ratings revised its outlook on Meta to “negative” from “stable,” citing significant uncertainty surrounding the company’s capital expenditure plans and free operating cash flow.
Meanwhile, rival Alphabet is also tapping debt markets. The Google parent is selling €6 billion ($6.72 billion) in bonds on Monday, according to a memo from one of the transaction’s managers.
The potential bond sale would give Meta another source of funding for its AI expansion as investors increasingly assess how major technology companies will finance their infrastructure ambitions while managing cash flow and financial risks.
