Alphabet Issued 100-Year Bonds for the First Time

Historical Bond Issuance by Alphabet

Google's parent company Alphabet Inc. has taken a revolutionary step in its global finance strategy by issuing bonds in sterling and Swiss franc for the first time in its history. This significant development follows the company's $20 billion borrowing in the US dollar market. Alphabet's initiative clearly demonstrates its determination to expand its liquidity pool by directing investments towards artificial intelligence (AI).

Why Choose Sterling and Swiss Franc?

Financial experts indicate that Alphabet's strategy to focus on the sterling and Swiss franc markets is aimed at diversifying its investor base and gaining access to low-cost capital centered in Europe. The company is offering a bond package consisting of a total of five different tranches in these two currencies. Notably, the sterling bonds attract attention with maturities ranging from 3 years to 32 years, while a rare 100-year bond option also piques investors' interest. On the other hand, Swiss franc bonds are offered with maturities focusing on market stability of 3, 6, 10, 15, and 25 years.

Growing Budget for AI Investments

Alphabet is drawing attention with its massive capital expenditures (CapEx) planned for the year 2026. The company announced that it allocated a budget of $185 billion for this year to strengthen its artificial intelligence infrastructure and expand its data centers. The bond issuance is seen as an important step to secure the necessary financing to achieve these goals. Besides Alphabet, other leading players in the industry, such as Meta Platforms Inc. and Microsoft Corp., are also planning similar-sized investments.

Debt Race Among Tech Giants

According to data from Morgan Stanley, it is projected that the total borrowing of major cloud service providers, known as hyperscalers, could reach $400 billion by 2026. Alphabet's focus on the sterling and Swiss franc markets is considered not only a financial tool but also a risk management strategy against global economic fluctuations.