Alphabet Considers Maiden Australian Dollar Bond Amid Record-Breaking AI Spend

Alphabet is reportedly considering its first Australian dollar bond issue, mandating ANZ, Deutsche Bank, RBC Capital Markets, and TD Securities as joint lead managers on a transaction that could include three-, five-, ten-, and twenty-year bonds.

The three- and five-year bonds may be issued with fixed or floating rates, while the longer-term issues would have fixed rates. Alphabet has already raised $25 billion in dollar bonds this month after raising nearly $85 billion in equity capital in June.

The tech giant's peers are increasingly moving towards capital markets to fund their massive AI spending, which is expected to exceed $730 billion this year and squeeze cash flows. In fact, Alphabet posted its first ever negative free cash flow in its second-quarter report in late July.