Facebook’s parent company Meta has announced that it will raise $10 billion dollars via a first-ever bond issue for the social media and metaverse giant. The bond money will be used to fund share buybacks and business revamp.
According to Reuters, the bonds offered will range from 5 years to 40 years, with a strong order demand of over $30 billion received from investors. The offers are skewed towards longer-term bonds.
Meta is the last remaining big tech firm in America to venture into debt financing to fund its growth. This move comes amidst speculation that cash funds are depleting as the company pivots towards a metaverse business model and grows its short video product Reels.
According to sources who talked to Reuters, the Meta team has been working on this offer for a couple of months and decided to go public after the July earnings call. The overall bond market has seen a resurgence after an initial rout following interest rate hikes earlier this year in America.