Key facts
- Alphabet raised A$5.5 billion ($3.89 billion) in its inaugural Australian dollar bond sale.
- The issuance included bonds with 3-, 5-, 10-, and 20-year maturities.
- The 20-year tranche carried a coupon of 6.9%.
- Investor demand for the offering exceeded A$18 billion.
- Alphabet is the first AI hyperscaler to issue bonds in Australian dollars.
Alphabet has raised A$5.5 billion ($3.89 billion) through its inaugural Australian dollar debt issuance, according to a term sheet seen by Reuters. The U.S. tech giant issued bonds with maturities of 3, 5, 10, and 20 years, setting the coupon at 6.9% for the longest tranche. This issuance marks Alphabet as the first AI hyperscaler to tap the Australian dollar debt market and the first U.S. large-cap tech company to issue a "Kangaroo" bond since Apple in 2016. Investor demand for the A$5.5 billion offering exceeded A$18 billion, underscoring strong appetite for new notes from tech companies. Global technology companies are increasingly turning to capital markets to fund substantial artificial intelligence investments, as their massive spending is beginning to strain cash flows. Alphabet posted its first-ever negative free cash flow in its second-quarter report in late July.