Microsoft to raise at least $25 billion in US bond sale, reportedly
MSFT•Microsoft is planning to raise at least $25 billion in its first US investment-grade bond sale in more than nine years, reportedly. The offering may include as many as 10 tranches with maturities from two to 40 years, and its size could change with demand.
1. Bond sale plans
Microsoft is planning to raise at least $25 billion through its first US investment-grade bond sale in more than nine years, reportedly. The debt could be issued in as many as 10 tranches, with maturities ranging from two to 40 years; the offering’s size has not been finalized and may change with demand.
2. Funding AI investment
The sale would make Microsoft the latest tech company to tap debt markets to fund AI spending. CFO Amy Hood told investors the company would pursue additional funding sources “when we believe it is attractive to do so,” citing the need to preserve cash flows and financial flexibility.
3. Cash flow outlook
Microsoft expects to generate positive free cash flow in its current fiscal year, which runs through June 2027. The company confirmed the bond sale in a regulatory filing but did not disclose its size.
