Microsoft, Oracle and Alphabet Issue Billions in Bonds Amid Strong Demand
Key Facts
Microsoft, Oracle and Alphabet issued new bonds between October 29 and November 2 in a funding wave spanning different currencies and maturities. Microsoft raised $25 billion, Oracle $10 billion, while Alphabet issued €6 billion in bonds, equivalent to about $6.7 billion, Reuters reported. Microsoft said proceeds from its offering would be used for general corporate purposes and could include capital expenditures, working capital, share repurchases, acquisitions and debt repayment. Oracle said proceeds from its bonds could fund capital expenditures, debt repayment, investments and acquisitions, or dividends and share repurchases. Alphabet said net proceeds from its offering could be used for general purposes, including repayment of outstanding debt.
Microsoft’s issue drew more than $100 billion in orders, or more than four times the planned offering size, Reuters reported. Alphabet’s issue attracted just over €17 billion in orders against a €6 billion offering. Alphabet split its issue into 7 tranches with maturities ranging from 2 to 19 years, including one floating-rate tranche and 6 fixed-rate tranches. Microsoft’s bonds mature between 2028 and 2066, with fixed coupons ranging from 4.85% to 6.35%. The offering details show differences in the three companies’ funding structures, including a range of maturities and currencies.
Oracle’s offering was part of a broader funding plan targeting about $10 billion from stock sales and another $10 billion from debt, with the bonds maturing between 2029 and 2046, Reuters reported. Oracle shares fell 8.8% to $119.22 after the company announced the fundraising on November 2, bringing their losses since the start of the year to about 39%, Reuters reported. The company had $125.34 billion in bonds payable and other borrowings on August 31, compared with revenue of $67.36 billion in fiscal 2026. More broadly, the tech-heavy Nasdaq indexes fell 5% in October amid concerns about funding heavy spending on artificial intelligence and the returns needed to justify the investment. More than $2 trillion in market value in the Nasdaq 100 was at risk of evaporating during October, Reuters reported, as investors questioned how quickly AI investments would generate returns.
Alphabet’s November issue was its second sale of euro-denominated bonds in 2026; in May, it sold €9 billion in bonds across 6 tranches, Reuters reported. The company said it expected capital expenditure of up to $205 billion during the year. On closing dates, Microsoft expected its offering to close on November 4, 2026, while Oracle said its stock and bond offerings were expected to close on the same date, subject to customary conditions. Oracle added that closing either offering was not conditional on closing the other. Microsoft shares closed at $507.12, Oracle at $119.22 and Alphabet at $278.99 on November 2, according to EL7 market data.