Key facts
- Alphabet raised A$5.5 billion ($3.89 billion) in its first Australian dollar bond offering.
- The issuance included bonds with 3-, 5-, 10-, and 20-year maturities.
- The 20-year tranche carried a coupon of 6.9%.
- This issuance sets a new benchmark for corporate debt sales in Australia.
- Global tech companies are increasingly funding AI investments through capital markets.
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 move marks a historic moment for the Australian corporate bond market, surpassing Apple's previous record for corporate debt issuance in the country. 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 itself posted its first-ever negative free cash flow in the second quarter of 2026. The company had previously raised $25 billion through a U.S. dollar bond sale, attracting significant investor demand.