BlackRock has issued $12.55 billion in bonds for Meta’s data centers, with a yield of 7.534%.

According to Bloomberg, the $12.55 billion investment-grade bonds issued by BlackRock for Meta’s data center project in El Paso, Texas, rose in early Monday trading. The bonds were priced with a yield of 7.534%, 287.5 basis points higher than U.S. Treasuries—a yield level more typical of junk bonds. During the issuance phase, the deal drew around $20 billion in orders, equivalent to just 1.6 times the amount offered, well below the average subscription level of roughly 4 times for bond deals this year. Still, the high yield ultimately attracted investors, with the bonds’ secondary market yield spread narrowing to around 260 basis points above U.S. Treasuries at one point, down from the 287.5 basis points at issuance. Tech firms have been rushing to raise large sums via bond offerings recently, squeezing investors’ capacity to absorb new AI-related debt. Tech bonds have faced sell-offs lately, and companies like Alphabet continuing to expand capital expenditure and potentially issuing more debt have also weakened demand for new bond issues. The early performance of BlackRock’s bonds stands in contrast to recent issuances by firms like SpaceX. After SpaceX completed its first investment-grade bond offering in June, the bonds fell in the secondary market, with investors facing significant unrealized losses at one point.