Investing.com -- SpaceX attracted approximately $89 billion in demand for its first U.S. bond sale, according to a Bloomberg report on Tuesday. The offering is set to become one of the largest deals in the U.S. investment-grade market this year.

Elon Musk's space and artificial intelligence company plans to raise between $20 billion and $25 billion through a five-tranche offering expected to price on Tuesday. At the lower end of that range, demand would be more than four times the bond size.

Price talk on the longest-dated bond, maturing in 2056, reportedly tightened by approximately 0.25 percentage point to 1.75 percentage points. The company will use proceeds from the sale to refinance a temporary bridge loan and fund other corporate expenses.

Bank of America Corp., Citigroup Inc., Goldman Sachs Group Inc., JPMorgan Chase & Co. and Morgan Stanley are managing the bond sale.

SpaceX raised more than $86 billion in its blockbuster June initial public offering. Days later, the company also confirmed a $60 billion all-stock deal to acquire AI coding startup Cursor.