Why did Meta decide to raise debt?
Aug 05, 04:08

Meta has issued corporate bonds in a first, to raise $10 billion. In June quarter, the company reported a contraction in revenue year on year, which is another first for Meta. Competition is heating up in the digital ad space with youngsters choosing platforms like Tiktok, and Bloomberg Intelligence's analysts believe that the money raised through this bond issue might be used for share buybacks and to hire and retain talent. The bond issue was sold in four parts and, the part with the longest tenure of 40 years, gave 165 bps yield above treasury bonds, according to a Bloomberg report.

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