Alphabet Inc., the parent company of Google, is returning to Europe’s debt market for the second time this year, launching a multi-tranche euro bond sale as it accelerates spending on artificial intelligence and cloud technologies. The technology giant is marketing six euro-denominated benchmark tranches ranging from three to 39 years, according to a person familiar with the matter. The total deal is expected to raise at least €3 billion ($3.5 billion), with the shortest tranche priced around 60 basis points over mid-swaps and the longest around 190 basis points.
The move comes just months after Alphabet’s €6.75 billion debut in the euro bond market earlier this year, which saw strong investor demand as the company sought to diversify its funding sources beyond the U.S. dollar market. This second European issuance underscores growing appetite among investors for high-grade corporate debt and highlights the tech sector’s aggressive push to secure funding amid soaring AI-related capital expenditures.
Alphabet’s latest bond sale follows a surge in demand for its cloud and AI services, with third-quarter revenue climbing to $87.5 billion. The company expects to spend a record $91 billion to $93 billion this year, primarily on data centers, AI infrastructure, and the expansion of Google Cloud. Revenue from products built on Google’s generative AI models has grown more than 200% from a year earlier, reflecting the company’s deepening commitment to commercializing its AI technologies.
The proceeds from the offering will be used for general corporate purposes, according to sources. Alphabet maintains a robust credit profile, rated Aa2 by Moody’s and AA+ by S&P Global Ratings. Goldman Sachs, HSBC, and JPMorgan are acting as joint global coordinators and bookrunners on the deal, alongside BNP Paribas, Crédit Agricole CIB, and Deutsche Bank. Pricing for the bonds is expected to be finalized later today.
Alphabet’s renewed push into European capital markets follows a wave of major tech bond issuances, including Meta Platforms Inc.’s $30 billion sale last week — the largest corporate bond deal of the year in the U.S. dollar market. Together, these offerings mark a new phase of aggressive financing as technology giants race to dominate the rapidly evolving field of artificial intelligence.
