Alphabet raises $3.9 billion in inaugural Australian dollar bond

Alphabet has ​raised A$5.5 billion ($3.89 ​billion) via its inaugural Australian ​dollar debt issuance, according to a term sheet seen by Reuters, adding to ‌the hectic ⁠pace ⁠of fundraising by global tech companies.

The US ​tech giant raised the amount by issuing ​3-, 5-, 10- and 20-year bonds, the term sheet showed. The company ​set the coupon ⁠at 6.9% ‌for the longest tenure ​bond ​tranche, according to the term ⁠sheet.

Alphabet did not immediately respond to ​a request for comment from ​Reuters.


Global tech companies are increasingly looking to capital markets to fund their massive AI spending, after having typically relied on their ‌large cash reserves to fund investments.

The firms are expected to ​spend more ​than $730 ⁠billion this year primarily on AI, and the outlay is already squeezing cash flows. ​Alphabet posted its first ever negative free cash flow in its second-quarter report in late July.