Now Reading: Alphabet Seeks Up to $25 Billion in Bond Sale
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Alphabet Seeks Up to $25 Billion in Bond Sale
Alphabet is seeking as much as $25 billion through a US investment-grade bond sale, with maturities ranging from two to 40 years. The Google parent is offering premiums of up to 1.55…
The Story in Brief
Alphabet is seeking as much as $25 billion through a US investment-grade bond sale, with maturities ranging from two to 40 years. The Google parent is offering premiums of up to 1.55 percentage points over US Treasuries on its longest notes, while overall concessions reach 0.4 percentage points above its existing debt, Livemint reports. No final deal size has been set. Alphabet also told investors it plans to issue US debt twice a year, after raising more than $50 billion through debt in the first half of 2026.
The sale tests demand for borrowing linked to artificial-intelligence spending. Alphabet raised its 2026 spending outlook to as much as $205 billion, and capital expenditure helped produce its first negative cash-flow quarter since its 2004 initial public offering. Bonds sold by Alphabet in February weakened in Thursday trading. Recent AI-linked issues from Meta and Amazon have also faced soft demand.
The Indian Opinion
The easy story is that investors have abandoned AI, or that they will fund any project bearing its name. Neither fits the evidence. Alphabet is offering unusually generous terms after raising spending sharply, while recent deals have met uneven demand. The useful test is not the headline size but whether buyers accept tighter pricing before the sale closes, and how these bonds trade in the secondary market afterwards.
Source: livemint.com
This story was synthesised by AI from the source linked above.
