Nvidia Considers Issuing Corporate Bonds for the First Time in 5 Years…At Least 30 Trillion Won Scale

Nvidia Considers Issuing Corporate Bonds for the First Time in 5 Years…At Least 30 Trillion Won Scale

Nvidia, the leading company in the artificial intelligence (AI) semiconductor industry and the top company by market capitalization, is expected to issue corporate bonds worth 30 trillion won.

Bloomberg reported on the 15th (local time), citing sources, that Nvidia is considering issuing bonds worth at least $20 billion (approximately 30.3 trillion won) on that day.

The bond maturities range from 2 to 30 years, and the interest rate for the longest-term bonds is being discussed at 0.9 percentage points higher than government bonds.

This marks Nvidia's first bond issuance in five years since 2021. The funds raised through these bonds will be used to repay outstanding debts.

Robert Schiffman, a Bloomberg Intelligence analyst, explained that by issuing long-term bonds, Nvidia can secure funding for strategic AI partnerships without lowering its current AA credit rating.

Nvidia acquired Intel shares worth $5 billion last year and invested $10 billion in Anthropic. In February of this year, it also agreed to invest $30 billion in OpenAI.

Amid the recent AI boom, an increasing number of related companies are raising funds through bond issuances.

In February of this year, Alphabet and Abbott each issued bonds worth $20 billion, and Oracle issued $25 billion in corporate bonds.

Following that, in March, Amazon ($37 billion) and Salesforce ($25 billion) raised funds through the bond market. In April, Meta issued bonds worth $25 billion.