Microsoft Goes Jumbo: $25 Billion Bond Sale in the Works

Key takeaways

• Microsoft’s $25 billion bond issue, its first since 2017, underscores its robust credit standing and the tech sector’s growing debt appetite.
• $25 billion potential raise
• 10 tranches
• maturities 2–40 years

What happened

Microsoft Corp. (NASDAQ: MSFT) is planning a new U.S. investment‑grade bond offering that could raise at least $25 billion, split into up to 10 tranches with maturities ranging from 2 to 40 years. The deal marks the company’s first debt issuance since 2017, when it raised $17 billion. The longest‑dated note, due 2066, is priced about 1.35 percentage points above Treasury yields. Wells Fargo, JPMorgan Chase and UBS Group are managing the sale, and proceeds will fund general corporate purposes,…

Why it matters

Microsoft’s return to the bond market signals confidence in its strong credit profile (AAA from Moody’s and S&P) and its need to finance a surge in capital spending—$45.2 billion in the September quarter, 30% higher

Short-term and longer-term

Short-term. In the next few days, watch the pricing of the 40‑year note—its yield spread over Treasuries will indicate demand for long‑dated AAA debt.

Longer-term. Over the coming months, the bond sale will affect Microsoft’s cost of capital and its ability to fund aggressive AI and infrastructure spending.