Meta's AI infrastructure financing

Meta's $15 billion bond offering closed with $58 billion in orders, a roughly 3.9 times oversubscription. Citigroup and Morgan Stanley arranged the deal across dollar and euro tranches; the euro portion is Meta's first. Dollar bonds mature over five to 30 years, euro bonds over roughly four to 38 years. The 30-year dollar tranche priced at approximately 250 basis points over Treasuries, about 0.9 points higher than Meta's April issuance. S&P responded by cutting Meta's credit outlook to negative, citing 2026 capex guidance of $135 billion to $145 billion and negative free cash flow last quarter.

The bond sale is part of a larger capital program. Meta filed with the SEC to raise approximately $95 billion in new equity through $22.5 billion in Class A shares via forward agreements, $12.5 billion in mandatory convertible preferred, and a planned $60 billion at-the-market program tied to a 2-for-1 stock split and new nonvoting Class C shares in January. The common stock portion was upsized to $25 billion at $625 per share after investor demand ran roughly five times the available shares; the 15 largest investors took about 70 percent of the deal. Nvidia committed $3 billion and AMD committed $1 billion to the raise, with Broadcom indicating nonbinding interest. Meta also holds a warrant for up to 160 million AMD shares, roughly 10 percent of the company.

Meta's long-term debt stood at $83.7 billion after rising approximately $25 billion in the first half of 2026, and the company disclosed roughly $825 billion in lease and contract commitments tied largely to AI infrastructure. Meta is projected to spend more than $740 billion on AI over three years and ranks third among Big Tech bond issuers since 2025 at approximately $70 billion raised, behind Alphabet and Amazon.