Google parent Alphabet sells $32 billion in bonds in 24 hours showing credit market appetite for tech, AI players
On Tuesday, Google parent company Alphabet Inc. set a record corporate bond sale in the sterling and Swiss franc markets, raising nearly $32 billion in debt in less than 24 hours to support its artificial intelligence initiatives. Bloomberg.
This sale marks the largest ever sale of corporate bonds in the UK and Swiss markets and demonstrates the enthusiasm and huge appetite of credit markets to finance the enormous needs of technology giants competing in the field of artificial intelligence, the report said.
Notably, the deals followed Monday’s $20 billion debt sale, and the sterling issuance also included an ultra-rare 100-year note, the first sale of such extreme maturity by a tech firm since the dot-com era. Bloomberg added.
Alphabet raises $32 billion in bonds
Demand was high across deals; It was a record overall high for sterling, with close to 10 times the 100-year bond’s £1 billion ($1.4 billion) sales orders drawn. This bond was priced at just 1.2 per cent above 10-year UK government bonds, while the shortest tranche, the three-year bond, was priced at 45 basis points on the gilt.
Such a wide range of maturities across different markets meant there was something for all types of investors, from asset managers to hedge funds, from pension funds to insurers who preferred longer-term debt.
The deal hit the market less than a week after Alphabet said it could raise up to $185 billion in capital this year (twice what it spent last year) to fund its AI ambitions.
Tech firms expect big spending to fund AI ambitions
Software giant Oracle Corp. It also recently raised $25 billion to fund its AI plans, with demand for $129 billion.
Meta Platforms Inc. While other tech firms, including Microsoft Corp. and Microsoft Corp., have announced big spending plans for 2026, Morgan Stanley expects the debt of giant cloud computing companies, known as hyperscalers, to reach $400 billion this year, up from $165 billion in 2025.
“Hyperscalers will continue to come and grow,” said Andrea Seminara, managing director at Redhedge Asset Management LLP, a London-based hedge fund. “They need to release more, so they are testing everything, every available pocket and appetite. And it will be the same for everyone,” he added, referring to other hyperscalers.
The massive borrowing needs of big tech firms have begun to raise some concerns about the potential pressure on bond valuations. Securities are expensive by historical standards. Some investors are also concerned about the longevity of the AI boom and its disruptive effects on related companies, such as the Software as a Service industry.
Alphabet and Oracle have made moves to ease investors’ concerns about heavy supply. Alphabet typically tapped into more niche markets to raise large sums without excessive demand, while Oracle capped deal size to limit the amount of debt hitting the market.
100-Year Bond — Everything you need to know
Alphabet’s 100-year note is the first sale by a technology firm with such extreme maturity since Motorola sold such debt in 1997. Bloomberg. Governments and institutions such as universities dominate the 100-year bond market. Potential acquisitions for companies, outdated business models and technological obsolescence make such deals rare.
“I wouldn’t be able to justify buying a bond this long in most companies, especially one that’s not subject to an ever-changing environment,” said Alex Ralph, associate portfolio manager at Nedgroup Investments Global Strategic Bond Fund. “100-year bonds also have a habit of being at the top of the market.”
Still, demand from UK pension funds and insurance companies has made sterling the go-to market for issuers looking for longer-term funds, and investors have come out in force for the century bond.
Global companies have also turned to the Swiss franc bond market in recent years to diversify their debt raising programs. Thermo Fisher Scientific Inc. in 2025. and U.S. firms including construction equipment maker Caterpillar Inc. sold Swiss franc debt.
Alphabet entered the euro bond market as recently as November, raising €6.5 billion ($7.7 billion). The deal, which added to a problem earlier in the year, made the firm the biggest borrower in the euro market in 2025, according to data compiled by the company. Bloomberg.
The £5.5 billion ($7.5 billion) sterling offering far surpassed the previous record corporate bond sale in the sterling market (the £3 billion sale by National Grid Plc in 2016). In the Swiss market, Alphabet’s sale surpassed Roche Holding AG’s previous record sale of 3 billion Swiss francs ($3.9 billion).
Bank of America Corp., Goldman Sachs Group Inc. and JPMorgan Chase & Co. arranged sterling and Swiss franc offerings, while Barclays Plc, HSBC Holdings Plc and NatWest Group Plc also took part in the sterling deal. BNP Paribas SA and Deutsche Bank AG took part in the issuance of the Swiss franc.
(With input from Bloomberg)
