Nvidia issues high-grade bonds again after five years

According to Golden Ten Data on June 15, NVIDIA (NVDA.O) is seeking to issue high-rated bonds again after about five years, continuing the wave of corporate borrowing and financing driven by the artificial intelligence boom. According to sources familiar with the matter, NVIDIA is promoting a bond issuance divided into seven maturities, ranging from 2 to 30 years. The preliminary pricing range for the longest-duration bonds is about 90 basis points higher than US Treasury yields. In order to build computing infrastructure to meet the rapid expansion of artificial intelligence, companies including Alphabet and Amazon have raised hundreds of billions of dollars in the debt market since last year, involving almost every segment of the bond market. Investors continue to absorb this new bond supply. Sources stated that the funds raised from this issuance will be used for general corporate purposes, including repaying and refinancing existing debt. The last time NVIDIA entered the investment-grade bond market was in June 2021, when it raised $5 billion.