Microsoft prices $25 billion debt offering across 10 tranches

Microsoft priced $25 billion of senior unsecured notes on Oct. 29 across 10 tranches, giving the company fresh borrowing capacity as its cloud and artificial-intelligence buildout raises its capital requirements. Microsoft said the net proceeds are for general corporate purposes, which may include capital expenditures, but it did not earmark any portion for AI. The offering is expected to close Nov. 4.

Two floating-rate tranches account for $2 billion: $1 billion is due in 2028 and another $1 billion in 2029. Eight fixed-rate tranches total $23 billion, with coupons ranging from 4.85% to 6.35% and maturities between 2028 and 2066.

The debt sale follows Microsoft’s fiscal 2026 disclosure that its cloud and AI strategy requires substantial, increasing capital spending and continued access to capital. The company said it is building and expanding datacenters, buying components and securing energy resources before the associated revenue streams are fully developed. It also cautioned that its ability to fund those investments partly depends on obtaining financing on acceptable terms. DataPhoenix’s coverage of Microsoft’s latest Azure results provides operating context for the cloud business alongside the infrastructure spending.

Microsoft reported $115.95 billion in additions to property and equipment for fiscal 2026, up from $64.55 billion a year earlier. It also had $34.6 billion in commitments for new buildings, improvements and leasehold improvements as of June 30, primarily for datacenters. Microsoft has not said how much of the bond proceeds, if any, will fund that infrastructure program.