Microsoft raises $25 billion in 10-tranche bond offering

The AAA-rated tech giant returns to the US bond market for the first time since 2017 to help fund its AI buildout Microsoft just asked the bond market for $25 billion. The bond market reportedly answered with $115 billion in orders. The company priced a $25 billion senior unsecured bond offering on October 29, 2026, split across ten separate tranches. It is Microsoft’s first major US dollar-denominated debt sale since a $17 billion deal in January 2017. Inside the $25 billion deal The offering is a mix of two flavors of debt. Microsoft sold eight fixed-rate notes and two floating-rate notes. The two floating-rate notes are worth $1 billion each. One comes due in 2028, the other in 2029. That leaves the remaining $23 billion in the fixed-rate tranches. Those fixed notes carry coupons ranging from 4.85% to 6.35%. Maturities across the whole offering run from 2028 all the way out to 2066. Underwriters on the deal included J.P. Morgan, UBS, and Wells Fargo. The issuance is scheduled to close on November 4, 2026. Demand that outran supply Orders reportedly totaled $115 billion, leaving the deal approximately 4.6 times oversubscribed. Microsoft’s credit profile helped. The company holds ...