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Alphabet kicks off €6 billion bond sale, tests appetite for tech debt
Investors placed more than €17 billion of orders as the company seeks funding for AI infrastructure and general corporate purposes.
- On Monday, Alphabet GOOGL-Q launched its second euro-denominated bond sale, testing investor appetite as confidence in the AI trade wobbles following recent tech stock and bond selloffs.
- Morgan Stanley reported that AI-related borrowing ballooned to almost $500 billion through September, up from $100 billion during the same period last year, signaling investor appetite limits.
- Alphabet shares fell nearly 19 per cent in October, while the tech-heavy Nasdaq dropped 5 per cent, fueled by disappointing quarterly results from Alphabet and Amazon AMZN-Q.
- The new bonds, expected to be priced later on Monday, have maturities ranging from 2 to 19 years, marking Alphabet's latest return to European debt markets.
- Analysts expect major tech companies to continue tapping European debt markets for infrastructure investment, despite rising rates exemplified by SpaceX paying 8.75% on recent loans.
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The owner of Google began offering euro-denominated bonds, following intensive sales in the last few years of the shares of technology companies.
Watch Alphabet’s (GOOGL) Euro Debt Market Return Tests Faith in AI
Alphabet is testing investor demand less than a week after its disappointing third-quarter earnings, kicking off its second sale of euro bonds this year. The Google parent has opened the books on a seven-part offering spanning maturities from two to 19 years, according to a person familiar with the matter. Matthew Bloxham of Bloomberg Intelligence has more.
·New York, United States
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Coverage Details
Total News Sources24
Leaning Left3Leaning Right2Center5Last UpdatedBias Distribution50% Center
Bias Distribution
- 50% of the sources are Center
50% Center
L 30%
C 50%
R 20%
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