Microsoft launches first high-grade dollar bond issuance since 2017, aiming to raise at least $25 billion

Odaily reports: Microsoft (MSFT.O) is conducting its first high-grade bond issuance in more than nine years, joining peers in a wave of heavy borrowing as the AI investment boom drives a surge in financing demand. According to people familiar with the matter, Microsoft plans to issue benchmark bonds in 10 tranches with maturities ranging from 2 to 40 years, with the longest tranche (maturing in 2066) initially guided at up to 1.35 percentage points above U.S. Treasury yields. Wells Fargo, JPMorgan and UBS Group will manage the bond issuance.

The people said the proceeds will be used for general corporate purposes, including capital expenditures. The issuance ends Microsoft's long absence from the bond market; its last high-grade bond sale was in 2017, when it raised $17 billion through a seven-tranche offering. According to the latest reports, Microsoft plans to raise at least $25 billion through the U.S. bond issuance.