Alphabet, the parent company of Google, is exploring the possibility of issuing its first bonds denominated in Hong Kong and Singapore dollars. According to sources familiar with the matter, the tech giant has held discussions with banks and investors about a potential debt sale. The company is considering raising between US$1 billion (S$1.28 billion) and US$1.5 billion in Hong Kong dollars, and around US$1.5 billion in Singapore dollars. The proceeds from this sale would be used for general corporate purposes.
The potential bond sale comes at a time when global markets are experiencing volatility due to concerns over artificial intelligence (AI) projects. Investors are growing wary of increased scrutiny of AI-related initiatives, particularly after Democratic gains in the US midterm elections. This has led to a widening of credit spreads for some technology issuers, contributing to a repricing in the global debt market.
Alphabet has been actively seeking debt financing in various markets this year. In August, the company sold its first Australian dollar bonds and has also issued notes in Swiss francs, British pounds, Canadian dollars, and Japanese yen. Just last week, Alphabet raised €6 billion (S$8.6 billion) through a multi-tranche euro bond sale, its second offering in the currency in 2026. The company paid higher borrowing costs in this deal compared to its inaugural euro offering in May, reflecting rising concerns over the pace of AI spending.
Global hyperscalers, including Microsoft, Amazon.com, and Meta Platforms, have been borrowing at a record pace while investing heavily in AI capabilities. Alphabet's potential bond sale in Asia would test investor appetite in the region amid the ongoing market volatility.