Chipmaker Nvidia seeks to raise over $25B in first bond deal since 2021
Summary
Nvidia plans to raise $25 billion by selling bonds, its biggest debt sale in five years, to finance general corporate needs and repay existing debt. Strong investor interest and favorable market conditions have allowed the company to offer bonds with a range of maturities at relatively low costs.Key Facts
- Nvidia is issuing $25 billion in investment-grade bonds in the U.S., the largest since 2021.
- The bond sale was increased from $20 billion after receiving over $85 billion in orders.
- Bonds will have maturities ranging from 2 to 30 years.
- The 10-year bond yield is expected to be 0.5 percentage points above U.S. Treasury bonds.
- Nvidia will use the money for general corporate purposes, including repaying and refinancing existing debt.
- This issuance will raise Nvidia’s total debt to about $30 billion, up from $8.5 billion.
- The company benefits from high demand for AI-related technology and investment.
- Nvidia holds a double-A credit rating, indicating strong creditworthiness.
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