Alphabet Eyes Aussie Dollar Bond Debut Amid Record-Kangaroo Sales

Alphabet, the US tech giant, is considering its first Australian dollar bond issue. According to a message from one of the book runners, investment banks ANZ, Deutsche Bank, RBC Capital Markets, and TD Securities are working on the deal. The company is looking to raise funds through 3-, 5-, 10- and 20-year bonds, with possible fixed or floating rates for the shorter terms.

The total amount of funds Alphabet plans to raise in this transaction remains unclear, as well as its intentions for the proceeds. Notably, the company has recently raised $25 billion in dollar bonds, following a massive equity capital raising in June, which totaled almost $85 billion.

This move marks the growing trend among tech companies to rely less on their cash reserves and more on capital markets to fund AI investments. As reported, these firms are expected to spend over $730 billion this year primarily on AI, putting a strain on their cash flows.