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Microsoft plans US$25 billion bond issuance to fund AI expansion
Microsoft Corp. is planning to raise at least US$25 billion through its first investment-grade bond offering in the United States in over nine years. The company aims to leverage its top-tier AAA credit ratings from Moody’s and S&P Global to finance massive investments in artificial intelligence and cloud infrastructure.
The offering is expected to be structured in up to 10 tranches, with maturities ranging from two to 40 years. While the final size of the deal may fluctuate based on investor demand, the funds are intended for general corporate purposes, including capital expenditures, acquisitions, and debt repayment.
This move follows a trend among major technology firms, such as Alphabet and Amazon, that are increasingly utilizing debt markets to fund the high costs of data center expansion and AI development. Microsoft last issued high-quality debt in 2017, raising approximately US$17 billion at that time.
Entities
Azure · JPMorgan Chase & Co. · Microsoft · Microsoft Corp. · Moody’s Ratings · OpenAI · S&P Global Ratings · UBS Group AG · Wells Fargo & Co.
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 2 SOURCES] Wells Fargo, JPMorgan Chase, and UBS Group are managing the bond offering. perfil.com · forbes.com.br
- [● 3 SOURCES] The offering may consist of up to 10 tranches with maturities between two and 40 years. perfil.com · www.powergame.gr · forbes.com.br
- [● 4 SOURCES] The bond issuance is intended to support investments in artificial intelligence. perfil.com · www.powergame.gr · www.sofokleousin.gr · forbes.com.br
- [● 2 SOURCES] The proceeds will be used for general corporate purposes, including capital expenditures. perfil.com · www.sofokleousin.gr
- [○ 1 SOURCE] The initial price reference for the 2066 maturity bond points to a premium of up to 1.35 percentage points over US Treasury bonds. perfil.com
- [● 3 SOURCES] Microsoft holds a AAA credit rating from Moody’s and S&P Global Ratings. perfil.com · www.powergame.gr · www.sofokleousin.gr
- [● 4 SOURCES] Microsoft plans to raise at least US$25 billion through a bond issuance. perfil.com · www.powergame.gr · www.sofokleousin.gr · forbes.com.br
- [● 3 SOURCES] This is Microsoft's first investment-grade bond issuance in the US since 2017. perfil.com · www.powergame.gr · forbes.com.br