Alphabet Taps Aussie Debt Market for Multi-Billion Dollar AI Funding Push
Alphabet Inc., the parent company of Google, has started marketing its debut Australian debt issue as it embarks on another multi-billion dollar fundraising drive. The move comes as Alphabet faces skyrocketing AI spending, which is driving up demand for funding.
The firm is seeking to price Aussie dollar notes in four maturities, with initial pricing guidance suggesting a bigger yield pickup than on comparable US dollar notes. According to data compiled by Bloomberg, the spread on three-year Aussie dollar notes is around 80 basis points over the local Australian benchmark.
This compares with a spread of about 56 basis points on similar-maturity US-currency notes if swapped into Aussie dollars, according to Bloomberg's data. The difference in yields could entice investors to take on more risk and invest in the Aussie dollar notes.