BlackRock launched a $12.3 billion high-grade bond sale to fund a Meta Platforms data center in El Paso, Texas. BlackRock affiliates own 80% of the project. Meta holds the remaining 20% interest. This structure keeps the debt off Meta’s balance sheet through a dedicated holding company.
The offering is reportedly meeting weak investor demand. Investors are demanding higher yields to compensate for massive capital costs and uncertain returns. The sale tests market appetite for large-scale AI infrastructure projects following recent tech stock sell-offs.