Facebook Parent Meta Raises $10 Billion in Its First-Ever Bond Offering

Apple and Intel also issued bonds recently, raising $5.5 billion (roughly Rs. 43,740 crore) and $6 billion (roughly Rs. 47,720 crore), respectively.

By Reuters | Updated: 10 August 2022 10:12 IST

Facebook Parent Meta Raises $10 Billion in Its First-Ever Bond Offering

Meta posted a gloomy forecast and recorded its first-ever quarterly drop in revenue

Highlights

Meta announced its first-ever bond offering last Thursday
The company received an 'A1' rating from Moody's
Meta did not disclose the size of the offering

Facebook-parent Meta Platforms Inc said on Tuesday it had raised $10 billion (roughly Rs. 79,530 crore) in its first-ever bond offering, as it looks to fund share buybacks and investments to revamp its business.

The offering would help Meta, the only one among big technology companies without debt on its books, to build a more traditional balance sheet and fund some expensive initiatives, such as its metaverse virtual reality.

Other tech giants such as Apple Inc and Intel Corp also issued bonds recently, raising $5.5 billion (roughly Rs. 43,740 crore) and $6 billion (roughly Rs. 47,720 crore), respectively.

[Sponsored] Samsung Galaxy S24: The Ultimate Camera Phone With Smarter On-Device AI

In late July, Meta posted a gloomy forecast and recorded its first-ever quarterly drop in revenue, with recession fears and competitive pressures weighing on its digital ads sales.

The company announced its first-ever bond offering last Thursday. The announcement came at a time when the social media company is making massive investments to fund its virtual reality projects. Back then, Meta did not disclose the size of the offering but said it would use the proceeds for capital expenditures, share repurchases, acquisitions or investments.

The company received an 'A1' rating from Moody's and an 'AA- rating' and a 'stable' outlook from S&P. Meta is selling four tranches of bonds with maturities ranging from five years to 40 years.

Meta Said to Curtail Misinformation Efforts Ahead of US Midterm Election

It might also be a rare opportunity to do so relatively cheaply in the current market environment. Corporate bonds have rebounded in the past month after a rout earlier this year, as investors hoped the US Federal Reserve's fight against inflation through rapid rate increases was starting to have some impact.

What should you make of Realme's three new offerings? We discuss them on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

Affiliate links may be automatically generated - see our ethics statement for details.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.