Alphabet Targets Record-Australian-Dollar Bond Debut Amid AI Spending Surge

Alphabet Inc (NASDAQ:GOOG) is poised to make history in Australia's corporate debt market by raising up to A$5 billion through its first Australian-dollar bond sale. The tech giant, parent company of Google, aims to offer 3-year, 5-year, 10-year, and 20-year tranches with fixed or floating interest rates.

The 'Kangaroo' bond, issued in Australian dollars by a foreign borrower, will help broaden Alphabet's funding sources as it accelerates investment in artificial intelligence infrastructure. The proposed raising is expected to be between A$4 billion and A$5 billion, potentially surpassing Apple's A$2.25 billion transaction from over a decade ago as Australia's largest corporate bond issue.

The bond sale will be managed by ANZ, Deutsche Bank, RBC Capital Markets, and TD Securities. This move follows Alphabet's recent activity across international debt markets, including US-dollar, yen, sterling, euro, Swiss franc, and Canadian-dollar bonds.