Microsoft joins the debt-raising spree amid the AI boom, planning to raise at least $25 billion through a US bond issuance.

BlockBeats news, October 29 — Microsoft (MSFT.O) plans to raise at least $25 billion through a U.S. bond offering. Microsoft is conducting its first high-grade bond offering in more than nine years, joining peers in a debt-raising spree as financing needs surge amid the AI investment boom. People familiar with the matter said 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 offering.

The proceeds will be used for general corporate purposes, including capital expenditures, the people said. The offering 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.