Google-parent Alphabet kicked off a euro-denominated bond sale on Monday, the IFR news service reported, testing investor appetite following a recent selloff in tech shares and bonds as confidence in the AI trade wobbles.
Alphabet will sell bonds over seven tranches, IFR reported, with the bond maturities ranging from two to 19 years. The bonds are expected to be priced later in the day.
Concerns about financing and financial returns needed to support the AI investment theme have hurt bonds and shares in the tech sector in recent weeks, with the tech-heavy Nasdaq falling 5 percent in October.
The latest AI turbulence stems from disappointing quarterly results including from Alphabet itself, and Amazon, two hyperscalers spending massively on data centers.
Still, analysts have anticipated a pick-up in bond sales from big tech firms in Europe as they look to fund their infrastructure spending.
The bond sale from Alphabet would mark its latest foray into European markets. In February, the tech firm sold a rare 100-year sterling bond. It then tapped the euro bond market in May, with a six-part offering.
Shares in Alphabet were up 0.16 percent on Europe's Tradegate platform. The company's US-listed shares dropped nearly 19 percent in October, marking their worst monthly performance on record.
On Monday, the company's dollar-denominated 2031 4.1 percent bond was steady at around 95.37 cents.
Reuters
