Meta’s planned euro bond drew €53 billion in reported orders

A November 4 report relaying Reuters and Bloomberg said Meta was seeking up to €9 billion for its debut euro bond sale and had received €53 billion in orders. The report said pricing was expected later that day. Separately, Meta had already sold $15 billion in dollar bonds, according to Bloomberg Línea.

Meta’s euro bond drew a €53 billion order book

The reported euro offering was structured in six tranches, with maturities ranging from just over four years to more than 38 years. The €53 billion order book reflects investor orders for a sale targeting up to €9 billion; it is not the amount Meta raised.

Bloomberg had reported on November 2 that Meta was considering a cross-border bond offering of at least $20 billion, with dollar and euro components. The euro order-book update came two days later.

The dollar sale carried yields of 5.85% to 7.53%

Bloomberg Línea reported that Meta sold $15 billion in dollar bonds across five tranches. Orders reached as much as $58 billion. The reported yields ranged from 5.85% to 7.53%, with the 10-year notes yielding 6.55%.

For the tranche due in 2056, Bloomberg Línea reported a spread of 2.2 percentage points over comparable U.S. Treasuries, down from initial guidance of 2.5 points. A spread is the extra yield over a comparable government bond; yield and spread describe different parts of the borrowing terms.

Similar order demand came with a wider reported spread

Meta’s November dollar sale drew orders equal to about 3.87 times the $15 billion issued ($58 billion ÷ $15 billion). Its April sale raised $25 billion and drew peak orders of $96 billion, or 3.84 times the issue amount, according to Bloomberg reporting.

Those order-book multiples were close, but they do not indicate the same borrowing cost. Bloomberg Línea reported that the November 2056 tranche’s spread was about 0.9 percentage point wider than that of a comparable Meta bond sold in April.

The financing was reported amid Meta’s AI spending

Bloomberg’s November 2 account placed the proposed borrowing amid Meta’s AI spending and investor skepticism about that spending. The reported dollar and euro figures describe separate stages of the cross-border financing: $15 billion in dollar bonds had been sold, while the November 4 report described orders for the prospective euro sale.