Microsoft to Raise $25 Billion in US Bond Sale: Report
The offering would be Microsoft’s first U.S. high-grade debt sale since 2017 as the company boosts AI infrastructure spending, Bloomberg reported.
- Microsoft is planning to raise at least $25 billion through its first U.S. investment-grade bond sale in more than nine years, Bloomberg News reported on Thursday, citing people familiar with the matter.
- Rising costs for AI infrastructure prompted the move; Microsoft disclosed $45.2bn in spending on data centers and equipment over the last three months, straining cash flow.
- Wells Fargo, JPMorgan Chase, and UBS Group are managing the offering, which is divided into 10 tranches with maturities ranging from two to 40 years.
- Microsoft remains one of only two U.S. companies with a AAA credit rating, giving it favorable borrowing terms as other tech giants tap debt markets for AI infrastructure.
- Alphabet, Amazon, Meta, Microsoft, and Oracle have doubled their combined debt to around $350bn over five years, though Amazon's earlier $25bn bond sale met lukewarm investor reception.
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After more than nine years of hiatus, Microsoft is returning to the US bond market, not in any case, preparing for a significant fundraising of at least $25 billion. The world's largest software maker, like its competitors, intends to finance its large-scale investments related to artificial intelligence from a bond issue, Bloomberg writes.
The Economic Times
Times of IndiaMicrosoft to raise $25 billion in US bond sale: Report
Microsoft is selling the debt in as many as 10 tranches, with maturities ranging from two to 40 years, Bloomberg reported, adding that no final decision has been made on the offering's size and that it may change according to demand.
Microsoft Kicks Off First US High-Grade Bond Sale Since 2017
Microsoft Corp. is looking to raise at least $25 billion from its first US investment-grade bond sale in more than nine years, joining rivals in a borrowing spree to fund the artificial intelligence investment boom.
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