Meta is looking to raise $10 billion through this bond issuance, focusing on the expansion of the metaverse.
By issuing its first bond, Meta is turning a new page in its financial chapter, transitioning away from being a major player without debt. With $10 billion raised from this offering, split into four parts, Meta’s ambitions to fund its metaverse initiatives are clear. The most sizable slice of this bond was a 40-year security offering a yield of 1.65 percentage points above the U.S. Treasury bond.
The decision to launch this bond was in part driven by financial difficulties faced by Meta. In the second quarter, significant losses were reported in their metaverse-focused Reality Labs division, while both the company’s stock value and cash inflow have seen declining trends in recent months.
For the second quarter of 2022, Meta generated $4.45 billion in free cash flow, a decline from the $8.51 billion reported in the same quarter the previous year.
Funding from this bond sale could be strategically utilized for various purposes, including capital expansion, stock buybacks, acquisitions, and further investments. Considering Meta’s current financial landscape, opting for this bond makes practical sense, especially since their stock has plummeted over 50% from the peak of $168.80 in September 2021. company to repurchase stocks Moody’s, a leading credit rating agency, has conferred an A1 investment grade rating upon Meta, while the S&P 500 has awarded it a slightly higher AA- rating.
Moody's noted, \"The A1 issuer rating is reflective of Meta's robust credit standing, underpinned by its dominant position in social media and a vast user base,” in a recent update.
As part of expanding their offerings, Meta is set to broaden Instagram's NFT capabilities to an additional 100 countries. The social media giant began introducing blockchain technology into Instagram back in June, with Facebook following suit in July. This integration allows users to engage with NFTs minted on the Flow blockchain and connect with various third-party wallets such as MetaMask, Coinbase Wallet, Trust Wallet, and Dapper. report .
On Thursday, Meta presented Samson Mow, the CEO of Pixelmatic and Chief Strategy Officer at Blockstream, emphasizes innovation in this space.
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In line with the Trust Project guidelines Agne serves as a journalist for Metaverse Post, where she explores the latest trends and advancements in the metaverse, artificial intelligence, and Web3 sectors. Her love for storytelling has led her to interview numerous experts in these areas, always on the lookout for compelling narratives. With a Bachelor's degree in literature, she possesses a broad writing background, touching on topics from travel to art and culture. Additionally, Agne has volunteered as an editor for an animal rights organization, working to raise awareness of crucial animal welfare matters. You can reach her via
