Google's parent company, Alphabet, has hired multiple banks to arrange its debut Australian-dollar bond offering as US tech giants have been raising funds for artificial intelligence investments in the credit market this year, Bloomberg reported.
According to an email statement from ANZ Bank, as reported by Bloomberg, Alphabet may issue four Australian-dollar bonds with varying maturities, with the longest tenor reaching 20 years. ANZ Bank is one of the banks mandated to arrange this bond issuance.
Alphabet had already issued US$25 billion (HK$195 billion) in US dollar-denominated bonds earlier this month. The company has also issued bonds in Swiss francs, British pounds, euros, Canadian dollars, and Japanese yen so far this year. In addition, Alphabet has recently raised nearly US$85 billion through a share placement.
As AI infrastructure investment continues to expand, US tech giants such as Alphabet, Meta, and Amazon have already raised hundreds of billions of dollars this year to support their AI development plans. However, as bond yields rise, the market has begun to question whether these tech giants can generate sufficient profits from their massive AI capital expenditures to cover their rising interest costs.
