Salesforce Issues $25 Billion in Bonds for Buybacks and Schedules AI Chip Rollout
Salesforce, Inc. (CRM) priced a $25 billion bond offering in March to fund share repurchases under a broader $50 billion buyback program. The move accompanied a 5.8% increase in the company's dividend and marks its first U.S. dollar bond sale since 2021, when it raised capital to acquire Slack.
The massive capital return strategy arrives as the company expands its technology footprint in data centers. Raising debt to repurchase shares allows the enterprise software firm to execute its buyback authorization while maintaining capital allocation flexibility.
Investors will be watching the upcoming fourth-quarter launch of Token Fabric phase one, an internal system designed to connect artificial intelligence chips in data centers. The rollout will take place in stages, with full deployment targeted for 2027.
Key points
- Salesforce, Inc. (CRM) raised $25 billion through a bond sale in March to fund share repurchases.
- The bond offering supports a $50 billion buyback plan and follows a 5.8% dividend increase.
- This debt issuance is the company's first U.S. dollar bond sale since acquiring Slack in 2021.
- The firm will launch phase one of Token Fabric in Q4 to link AI chips in data centers, aiming for full deployment by 2027.
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How we writeDisclaimerQuestions and answers
Why did Salesforce raise $25 billion in bonds?
Salesforce issued the $25 billion bond sale in March to finance share repurchases under a $50 billion buyback program.
When will Salesforce launch Token Fabric?
Salesforce will launch phase one of Token Fabric in the fourth quarter, with complete rollout expected by 2027.
When was Salesforce's previous dollar bond sale?
Salesforce previously issued U.S. dollar bonds in 2021 to support its acquisition of Slack.