Facebook-parent Meta Platforms Inc stated on Tuesday it had raised $10 billion (roughly Rs. 79,530 crore) in its first-ever bond providing, because it seems to fund share buybacks and investments to revamp its enterprise.

The providing would assist Meta, the one one amongst huge know-how firms with out debt on its books, to construct a extra conventional steadiness sheet and fund some costly initiatives, reminiscent of its metaverse digital actuality.

Other tech giants reminiscent of Apple Inc and Intel Corp additionally issued bonds not too long ago, elevating $5.5 billion (roughly Rs. 43,740 crore) and $6 billion (roughly Rs. 47,720 crore), respectively.

In late July, Meta posted a dismal forecast and recorded its first-ever quarterly drop in income, with recession fears and aggressive pressures weighing on its digital advertisements gross sales.

The firm introduced its first-ever bond providing final Thursday. The announcement got here at a time when the social media firm is making large investments to fund its digital actuality tasks. Back then, Meta didn’t disclose the scale of the providing however stated it might use the proceeds for capital expenditures, share repurchases, acquisitions or investments.

The firm acquired an ‘A1’ score from Moody’s and an ‘AA- score’ and a ‘steady’ outlook from S&P. Meta is promoting 4 tranches of bonds with maturities starting from 5 years to 40 years.

It may additionally be a uncommon alternative to take action comparatively cheaply within the present market atmosphere. Corporate bonds have rebounded up to now month after a rout earlier this 12 months, as traders hoped the US Federal Reserve’s combat towards inflation by means of fast fee will increase was beginning to have some influence.

© Thomson Reuters 2022