Alphabet Inc. is expected to raise €6.25 billion ($7.2 billion) in Europe’s debt market, adding to a wave of offerings from technology companies as they invest aggressively in artificial intelligence.
The sale comes just days after Meta Platforms Inc.’s $30 billion offering, the biggest of the year, and Alphabet’s blockbuster earnings that showed surging demand for cloud and AI services. The Google parent is marketing six euro-denominated slices of debt, with maturities ranging from three to 39 years, according to a person familiar with the matter.
This marks Alphabet’s second visit to the euro market in 2025 after it raised €6.75 billion in April in a debut sale that helped diversify its funding beyond dollars.
Spending spree
The offering adds to a wave of bond sales from technology companies as they boost spending on AI and bet on a future powered by gigantic data centers filled with humming servers.
Morgan Stanley expects big firms known as hyperscalers to spend about $3 trillion on infrastructure such as data centers between now and 2028, with roughly half of that funded through cash flows.
Alphabet’s latest bond sale comes after it reported a surge in demand for cloud and AI services, with third-quarter sales rising to $87.5 billion. The company is investing record amounts to accelerate AI development, with capital expenditures expected to reach $91 billion to $93 billion this year.
Proceeds from the euro bond sale and any concurrent US dollar offering will be used for general corporate purposes, the person said. The spread on the three-year euro debt is 25 basis points over the reference rate, known as mid-swaps, they added. The 39-year part will be sold at 158 basis points above the benchmark.
The 39-year tranche is the longest to be sold in Europe’s publicly syndicated market this year, according to data compiled by Bloomberg. Alphabet is rated Aa2/AA+.
Goldman Sachs, HSBC, and JPMorgan are joint global coordinators and joint bookrunners, while BNP Paribas, Crédit Agricole CIB, and Deutsche Bank are also joint bookrunners. Pricing is expected later today.
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