Meta courts European bond investors for first non-dollar debt

Meta Platforms ↗ 0.57% has been meeting with European bond investors for at least a week as part of a non-deal roadshow, Bloomberg reported on Friday, as the company explores its first-ever debt issuance outside the U.S. dollar market.finance.yahoo

The Facebook parent has not provided a timeline for a potential bond sale, and the roadshow format carries no guarantee that an offering will follow, according to people familiar with the meetings. During such events, companies discuss their credit profile, earnings strategy, and outlook with investors and analysts without committing to a deal.finance.yahoo

Funding the AI Buildout

The move comes as major technology companies increasingly turn to international debt markets to finance sprawling AI infrastructure. Meta last raised debt in April through a $25 billion, six-part dollar-denominated bond offering. A European deal would open a new pool of capital for the company as it competes with rivals in the AI spending race.benzinga+1

Amazon Amazon.com, Inc. ↗ 1.94% made its debut in the U.K. sterling bond market this week, raising £4.25 billion ($5.75 billion) in one of the largest-ever borrowings in that market. Alphabet ↗ 1.53% has tapped the euro, sterling, Japanese yen, Canadian dollar, Swiss franc, and Australian dollar markets this year.finance.yahoo

Beyond Conventional Bonds

Meta has also pursued off-balance sheet financing for its data center expansion. A corporate bond sale by BlackRock ↗ 1.62% tied to a Meta data center project in Texas attracted weaker-than-usual demand and priced with a coupon above 7.5%, Bloomberg reported.finance.yahoo

JPMorgan ↗ 0.76% upgraded Meta to Overweight on September 10 and raised its price forecast to $820. Meta shares rose in Friday trading as investors moved into mega-cap growth stocks.benzinga

The roadshow signals Meta's intent to diversify its funding sources as the cost of building AI infrastructure continues to climb, though whether European investors will see a formal offering remains an open question.