Alphabet Targets $3 Billion in First Bonds in Two Asian Currencies
Key Facts
Alphabet is seeking to raise about $3 billion equivalent through its first bond issue denominated in Hong Kong and Singapore dollars, according to people familiar with the matter cited by Reuters on November 11. The two deals could raise at least $2.2 billion, based on details of the proposed offering. The company is considering a minimum of HK$8 billion for the first tranche and S$1.5 billion for the second. The issue comes as Alphabet expands its borrowing across multiple currencies and markets, while Reuters links the proposed borrowing to increased spending on data centers and AI computing infrastructure. The final size, timing and pricing remain undecided.
Alphabet appointed HSBC and JPMorgan as joint global coordinators for the potential issue, according to the term sheet cited by Reuters. The sheet indicates the bonds could carry ratings of Aa2 from Moody’s and AA+ from S&P. These ratings cover the two proposed tranches, without settling the final terms of the issue. The appointment of the coordinators reflects the deal’s entry into a preparation phase with two global banks, while its actual size remains subject to a final decision. Timing and pricing have not yet been determined, according to information published about the offering.
The Hong Kong dollar tranche could include maturities of two, five and 10 years, while the Singapore dollar tranche could include two-, five- and 10-year maturities, as well as a 30-year maturity. These proposed maturities would allow investors to choose among short-, medium- and long-term tenors within the issue. However, the maturity structure remains proposed, like the other deal details. The offering could begin as early as Thursday, with pricing during Asian trading. The bonds are expected to settle on November 19, subject to developments in the execution of the issue.
The proposed issue extends Alphabet’s international borrowing during 2026, according to its financial statements. In the nine months ended September 30, the company issued $45.0 billion of senior unsecured notes denominated in U.S. dollars, alongside foreign-currency notes equivalent to $35.8 billion, for general corporate purposes. The foreign currencies included sterling, the Swiss franc, the euro, the Canadian dollar, the Japanese yen and the Australian dollar. These figures show borrowing completed through the end of September and exclude the proposed Asian offering in November. EL7 reported on November 9 that the company was considering a two-tranche Asian issue potentially worth the equivalent of $3 billion.
On November 2, Alphabet issued €6 billion of euro bonds, which attracted orders of €17.1 billion, according to EL7 data. This provides recent context for the company’s return to international debt markets ahead of its potential Asian offering. Reuters said the proposed issue tests demand from Asian investors after a global selloff linked to AI earlier in the month. The level of interest in the bonds is expected to become clearer once pricing begins, if the company proceeds with the offering. Alphabet shares closed at $287.38 on November 10, according to EL7 data.