Alphabet Targets Record A$5 Billion Bond Sale in Australia

Alphabet Inc., parent company of Google, is preparing to issue its first Australian-dollar bond sale, aiming to raise up to A$5 billion. This would set a record for the country's corporate debt market and surpass Apple's A$2.25 billion transaction from over a decade ago.

The bond sale, known as a 'Kangaroo' bond due to being issued in Australian dollars by a foreign borrower, will offer four tranches: 3-year, 5-year, 10-year, and 20-year notes. Shorter maturities may be offered with fixed or floating interest rates, while longer-dated notes would carry fixed rates.

This move is part of Alphabet's efforts to broaden its funding sources as it accelerates investment in artificial intelligence infrastructure. The company recently increased its 2026 capital expenditure guidance to between US$195 billion and US$205 billion, primarily due to the faster deployment of capacity to meet demand.