① Sources familiar with the matter revealed that Alphabet will issue six tranches of euro-denominated benchmark bonds with maturities ranging from 3 to 39 years, with a total expected size of at least 3 billion euros (approximately 3.5 billion US dollars); ② As the AI investment boom continues to heat up, many technology companies have recently increased their fundraising efforts.
According to sources, Google's parent company, Alphabet, plans to issue at least €3 billion in bonds in Europe to support its efforts in artificial intelligence. Record capital expenditures in AI and cloud infrastructure. This will be the company's second return to the European bond market this year.
Sources familiar with the matter revealed that Alphabet will issue six tranches of euro-denominated benchmark bonds with maturities ranging from 3 to 39 years, with a total expected size of at least €3 billion (approximately US$3.5 billion).
The pricing of the 3-year bond was about 60 basis points higher than the medium-term swap rate, while the issuance price of the longest-term 39-year bond was about 190 basis points higher.
This will be Alphabet's second bond issuance in the euro market this year. Earlier this year, the company issued its first multi-tranche bond offering totaling €6.75 billion, which was met with enthusiastic investor demand, marking the US tech giant's expansion of its financing channels from the dollar market to Europe.
It is understood that the proceeds from this fundraising will be used for general corporate purposes. Alphabet's credit rating is Aa2/AA+.
Goldman Sachs HSBC and JPMorgan Chase Serving as Joint Global Coordinator and Joint Bookrunner; BNP Paribas Crédit Agricole and Deutsche Bank They are also joint bookrunners. Pricing is expected to be determined later today.
Alphabet reported strong third-quarter earnings last week, thanks to its cloud computing business. With a surge in demand for AI services, revenue grew to $87.5 billion in the quarter.
The company is investing record capital expenditures to drive AI development, with full-year capital expenditures expected to reach $91 billion to $93 billion. Revenue from products based on Google's generative AI models has grown by more than 200% year-over-year.
As the AI investment boom continues to heat up, many tech companies have recently increased their fundraising efforts. Last week, Meta issued $30 billion in corporate bonds in the dollar market, marking the largest dollar bond issuance this year.
(Article source: CLS)
