Bond

Alphabet Eyes First Australian Dollar Bond Issue

Shivangi

Aug 17, 2026 4:00 PM IST

Category Bond

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Synopsis

Alphabet has mandated banks for its first Australian dollar bond issue as global tech companies increasingly turn to debt markets to fund AI spending.

Key Highlights

• Alphabet mulls first Australian dollar bond.
• The company is looking at 3-, 5-, 10 and 20-year bonds.
• Not disclosed are the amount to be raised and the use of proceeds.
• Google Spent $25 Billion On US Dollar Bonds Earlier This Month

Alphabet has instructed investment banks to address its inaugural Australian dollar bond deal. The US technology giant plans to sell both 3-, 5-, 10- and 20-year bonds. The 3- and 5-year bonds could have fixed or floating rates, the 10- and 20-year with fixed rates.

Alphabet Expands Bond Financing

The message did not say how much Alphabet intends to raise or what it would do with the proceeds. Sharing was not available with an instant response from Alphabet to a Reuters request for comment. Earlier in August, Alphabet secured $25 billion in dollar bonds and before that, it did an almost $85 billion equity capital raise in June.

Increasingly global tech companies are seeking capital markets to finance large AI deployments. It is likely to spend $730 billion plus this year and a lot more on AI; a week ago, Alphabet reported its first-ever free cash flow shortage in the results of this July’s second quarter.

Australian Dollar Bond Market Grows

Major global issuers are increasingly turning to local currency bonds as a way to diversify their dependence on US dollar bond markets.

LSEG data through late July shows that foreign issuers have sold about A$60 billion ($42 billion) in Australian dollar “Kangaroo” bonds this year, around 40% more than for the same period in 2025. The lead managers on the Alphabet transaction are ANZ, Deutsche Bank, RBC Capital Markets and TD Securities.

Source: Reuters