Alphabet Eyes Aussie Dollar Bond as Tech Giants Tap Capital Markets

Alphabet, the US tech giant behind Google, is considering issuing its first Australian dollar-denominated bond. According to an unnamed book runner, the company has mandated investment banks ANZ, Deutsche Bank, RBC Capital Markets, and TD Securities to work on the deal.

The potential offering could include three-, five-, 10- and 20-year bonds, with the shorter-term issues potentially having fixed or floating interest rates. The longer-term bonds would have fixed rates.

It's unclear how much Alphabet plans to raise from the transaction or what it will do with the proceeds. However, the company raised $25 billion in dollar-denominated bonds just last month and completed an almost $85-billion equity capital raising in June.

The move follows a trend among global tech companies seeking to fund their massive artificial intelligence spending through the capital markets. These firms are expected to spend more than $730 billion on AI this year, putting pressure on their cash flows. Alphabet itself posted its first-ever negative free cash flow in its second-quarter report last month.

Meanwhile, local currency bond sales from foreign issuers in Australian dollars have reached a record high of around AU$60 billion ($42 billion) so far this year, up roughly 40 percent from the same period in 2025.