Microsoft returns to the US bond market, planning to issue at least $25 billion in bonds
Bloomberg reports that Microsoft is returning to the US bond market for the first time since its $17 billion bond issuance in 2017, planning to raise at least $25 billion through up to 10 tranches. Its 40-year bond pricing is close to the long-term bonds of Alphabet and Amazon, despite Microsoft having a higher AAA rating. Hyperscale cloud providers and data center developers have issued more than $313 billion in investment-grade bonds this year, nearly three times the total for 2025, driving global bond issuance to a record $6.61 trillion.
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Microsoft is returning to the US bond market after years away, but its 40-year bond pricing is close to that of Alphabet and Amazon, showing the impact of AI infrastructure debt on overall financing costs.
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Bloomberg: Microsoft is returning to the US bond market for the first time since its $17B sale in 2017, seeking at least $25B across up to 10 tranches.
Its 40-year note is priced near Alphabet’s and Amazon’s long bonds despite Microsoft’s stronger AAA rating, which suggests the flood of AI debt is lifting borrowing costs for everyone.
Hyperscalers and data center developers have sold more than $313B of investment-grade bonds this year, almost 3 times 2025’s total, pushing global bond sales to a record $6.61T.