{"slug": "blackrock-raises-us-12-5-billion-of-debt-for-meta-data-centre", "title": "BlackRock raises US$12.5 billion of debt for Meta data centre", "summary": "BlackRock raised US$12.5 billion in debt for a Meta Platforms data centre project in Texas, with the 2048 note pricing at a yield premium of 2.875 percentage points over 10-year Treasury yields. The deal, managed by JPMorgan Chase and Morgan Stanley, drew about US$20 billion in orders and will fund a campus in El Paso expected to provide up to one gigawatt of computing capacity for AI workloads.", "body_md": "# BlackRock raises US$12.5 billion of debt for Meta data centre\n\nThe 2048 note sells at a yield premium of 2.875 percentage points over 10-year Treasury yields, according to a source\n\n[NEW YORK] BlackRock wrapped up a US$12.5 billion bond sale tied to a Meta Platforms data centre project in Texas after a nearly week-long marketing process and a [sell-off in big tech debt](https://www.businesstimes.com.sg/companies-markets/blackrock-gets-soft-demand-bond-sale-after-ai-debt-sell).\n\nThe 2048 note sold at a yield premium of 2.875 percentage points over 10-year Treasury yields, according to a person with knowledge of the matter.\n\nThe pricing was in line with [initial discussions](https://www.businesstimes.com.sg/companies-markets/blackrock-eyes-more-us12-billion-debt-texas-data-centre), making it a rare case of an investment-grade bond deal that failed to tighten during the syndication process.\n\nThe deal ended up about US$273 million larger than expected when it launched, the person said, asking not to be identified because the discussions are private.\n\nThe bonds also rallied in early trading on Monday (Jul 27), suggesting investor demand strengthened after a lackluster reception last week.\n\nInvestor appetite for financing artificial intelligence infrastructure has faded in the US high-grade debt market following a glut of jumbo offerings and growing concerns over whether massive investments in data centres will pay off.\n\nThe new notes – offered by a BlackRock-tied firm named Sopaipilla Investor – drew as much as US$20 billion of orders, or just about 1.6 times the amount for sale, according to people with knowledge of the matter.\n\nBorrowers typically aim to generate demand multiple times the size of a bond offering to get optimal pricing.\n\nProceeds will fund a data centre campus in El Paso, Texas that is expected to provide as much as one gigawatt of computing capacity for AI workloads.\n\nBlackRock subsidiaries Global Infrastructure Management and HPS Investment Partners hold an 80 per cent stake in the project, with Meta owning the remaining 20 per cent.\n\nJPMorgan Chase and Morgan Stanley managed the debt offering.\n\nThe bond sold at a yield premium to where the Beignet notes, sold in October to help finance a Meta data centre in Louisiana, currently trade.\n\nThe Sopaipilla transaction, named after a fried pastry popular in southwestern US, resembles a project finance loan.\n\nSuch debt is issued by a special-purpose vehicle, the principal is gradually repaid over time and the obligations are backed by Meta’s lease commitments.\n\nThe structure allows Meta to raise the money off-balance sheet, easing woes about excess borrowing, while making investors comfortable with the risk because the social media giant backs the debt through the data centre lease. BLOOMBERG\n\nDecoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.\n\nShare with us your feedback on BT's products and services", "url": "https://wpnews.pro/news/blackrock-raises-us-12-5-billion-of-debt-for-meta-data-centre", "canonical_source": "https://www.businesstimes.com.sg/companies-markets/blackrock-raises-us12-5-billion-debt-meta-data-centre", "published_at": "2026-07-27 22:27:55+00:00", "updated_at": "2026-07-27 22:53:57.224232+00:00", "lang": "en", "topics": ["artificial-intelligence", "ai-infrastructure", "ai-chips"], "entities": ["BlackRock", "Meta Platforms", "JPMorgan Chase", "Morgan Stanley", "Global Infrastructure Management", "HPS Investment Partners", "Sopaipilla Investor", "El Paso"], "alternates": {"html": "https://wpnews.pro/news/blackrock-raises-us-12-5-billion-of-debt-for-meta-data-centre", "markdown": "https://wpnews.pro/news/blackrock-raises-us-12-5-billion-of-debt-for-meta-data-centre.md", "text": "https://wpnews.pro/news/blackrock-raises-us-12-5-billion-of-debt-for-meta-data-centre.txt", "jsonld": "https://wpnews.pro/news/blackrock-raises-us-12-5-billion-of-debt-for-meta-data-centre.jsonld"}}