Alphabet raises $3.9 billion in inaugural Australian dollar bond
The deal is the largest corporate bond sale ever in Australia and comes as Alphabet boosts borrowing to fund AI spending.
- Alphabet priced its inaugural Australian dollar bond at A$5.5 billion on Wednesday, setting a record as the largest corporate bond sale ever in the Australian market.
- Global tech companies are increasingly turning to capital markets to fund massive AI spending, as firms expect to spend more than $730 billion this year, squeezing their cash flows.
- The bond features four tranches at 3, 5, 10, and 20 years, with the longest carrying a 6.9% coupon; ANZ, Deutsche Bank, and RBC Capital Markets managed the sale.
- Alphabet has tapped seven different currency markets in eighteen months as large hyperscalers issued a record $159 billion in bonds this year to fund AI infrastructure expansion.
- Meanwhile, Alphabet's reported $20 billion Australian data center investment remains on hold since March over tax treatment concerns, though the company stated it was "not asking for incentives, public funds or changes to the treatment of its existing businesses.
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Alphabet Raises $3.9B in First Australian Bond Sale as AI Spending Surges - Apple (NASDAQ:AAPL), Alphabet
Alphabet Inc. (NASDAQ:GOOGL) raised A$5.5 billion ($3.89 billion) in its first Australian dollar bond sale Wednesday, as the Google parent increasingly taps global debt markets amid an AI investment boom. Investors
Alphabet raises $3.9 billion in inaugural Australian dollar bond
Alphabet has raised A$5.5 billion ($3.89 billion) via its inaugural Australian dollar debt issuance, according to a term sheet seen by Reuters, adding to the hectic pace of fundraising by global technology companies.
Alphabet’s 7% Aussie Bond Debut Underscores the Sky-High Cost of AI Debt
Alphabet Inc. paid just under 7% to borrow longer-dated funds in its debut Australian dollar bond offering, its highest-ever for a note, underscoring how broader demands for cash among hyperscalers around the world are feeding into more costly funding almost everywhere.
Alphabet raises A$5.5bn in Australia, more than doubling a record Apple set in 2015
Alphabet priced its first Australian dollar bond at A$5.5bn (US$3.9bn), the largest corporate bond sale in Australian history and an upsize on the A$5bn expected.
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