Key Moments
- Alphabet reportedly sold $20bn (€16.8bn) of dollar bonds, upsized from $15bn (€12.6bn) after demand exceeded $100bn (€84bn).
- The company is planning additional multi-currency issuance, including a potential 100-year sterling bond and a possible Swiss franc deal.
- Tech hyperscalers are projected to borrow around $400bn (€335.7bn) in 2026, potentially driving total US high-grade corporate issuance to $2.25tn (€1.88tn).
Alphabet’s Oversubscribed Dollar Bond Deal
Alphabet reportedly raised $20bn (€16.8bn) in the US bond market on Monday, increasing the deal size from an originally planned $15bn (€12.6bn) as investor demand surged past $100bn (€84bn) in orders.
The US dollar component of the transaction is structured into seven separate tranches. The longest-dated tranche is a 40-year bond scheduled to mature in 2066. Initial expectations were that this portion of the debt would price at 1.2% above comparable US Treasuries, but projections now suggest the spread will narrow to about 0.95%.
Investor appetite was particularly strong at the short end of the curve. The three-year bonds were reportedly priced at just 0.27% over US Treasuries, underscoring robust demand for Alphabet’s near-term paper.
| Feature | Detail |
|---|---|
| Total dollar bonds sold | $20bn (€16.8bn) |
| Initial planned size | $15bn (€12.6bn) |
| Order book demand | Over $100bn (€84bn) |
| Number of USD tranches | 7 |
| Longest maturity | 40-year bond due 2066 |
| Expected spread on longest tranche | Initially 1.2% over Treasuries, forecast to tighten to about 0.95% |
| Spread on 3-year bonds | 0.27% above US Treasuries |
JPMorgan, Goldman Sachs, and Bank of America are involved in managing Alphabet’s bond sales across all three contemplated currencies.
Plans for Sterling and Swiss Franc Issuance
Alongside the US dollar transaction, Alphabet is preparing to issue bonds in additional currencies as part of a broader multi-currency funding strategy. The company is planning a sterling-denominated offering that could feature a rare 100-year bond. A Swiss franc transaction is also described as potentially imminent.
Alphabet (Google) is issuing 100 year sterling bonds.
The first tech century bond since the dot com era
Funding the insane AI capex wave ($175–185B in 2026 alone). Borrowing in GBP while rates allow it.
Wild times in Big Tech debt markets. #AI #GOOGL #Alphabet #Investing… pic.twitter.com/9CdVgPNYOe— Diego Martins (@diegodcmartins) February 9, 2026
If the 100-year sterling bond is completed, it would mark the first time in nearly three decades that a technology firm has issued a century bond. The last such transaction in the sector was by Motorola in 1997.
Rationale Behind a Multi-Currency Debt Strategy
The article outlines several potential motivations for Alphabet’s multi-currency approach to its debt raise.
- Diversification of investor base: By issuing in multiple currencies instead of relying solely on the US dollar market, Alphabet can broaden its pool of investors, which is presented as particularly relevant as major technology companies face rising capital requirements to expand AI infrastructure.
- Managing supply-demand dynamics: Accessing multiple markets helps avoid a situation in which a large concentration of issuance in dollars creates a supply-demand imbalance that could push up the cost of the debt and compress bond yields to levels that might be less attractive to investors.
- Interest rate considerations: Sterling markets are described as offering lower interest rates than dollar markets, making a potential 100-year sterling bond relatively more cost-effective while also appealing to investors seeking long-dated exposure.
AI Investment Drives Record Borrowing
Alphabet’s aggressive use of the bond market follows its announcement of record capital expenditures tied to artificial intelligence. The company has disclosed AI-related capex of more than $185bn (€155bn), approximately double the amount spent the previous year, to support the build-out of Gemini and its cloud infrastructure.
To fund these initiatives, Alphabet’s long-term debt is described as having already quadrupled to $46.5bn (€39bn) in 2025. At the same time, the company is reported to hold more than $125bn in cash available for deployment.
Big Tech Borrowing Wave Intensifies
Alphabet’s activities are part of a broader surge in borrowing among large technology firms. The article notes that Oracle recently raised $25bn (€21bn) through a bond sale that attracted a record $129bn (€108bn) in investor orders.
Morgan Stanley estimates that tech hyperscalers will collectively borrow around $400bn (€335.7bn) in 2026, more than double the $165bn (€138.5bn) raised in 2025. This increased issuance by the sector is projected to help drive total new issuance of high-grade US corporate bonds to a record $2.25tn (€1.88tn) in 2026.
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