Alphabet, the parent company of Google, has re-entered the euro bond market with a new large-scale bond issuance. This move comes just months after the company raised nearly $32 billion through bonds denominated in U.S. dollars, British pounds, and Swiss francs.

According to informed sources, Alphabet plans to issue at least €3 billion (equivalent to $3.5 billion) across six tranches. The individual, who requested anonymity due to the private nature of the information, indicated that the longest-dated bond maturing in 2063 carries an initial price guidance of approximately 205 basis points above mid-swap rates.

Alphabet stated last week that it expects capital expenditures to reach as high as $190 billion this year, with significant investment directed toward data centers critical to its artificial intelligence strategy. Proceeds from Monday's bond offering, along with other concurrent fundraising activities, will be used for general corporate purposes, including the repayment of existing debt, according to sources familiar with the matter.

Alphabet, Meta Platforms, Microsoft, and Amazon—four major technology giants—are planning to allocate up to $725 billion this year toward artificial intelligence data center equipment and other capital expenditures, representing a further increase from previous expectations.

Commenting on the broader trend among cloud computing companies, Ian Horn, portfolio manager at Muzinich, noted, "These technology firms will continue to grow their presence in the bond market, mirroring their earlier trajectory in equity markets."

In February of this year, Alphabet set a record by issuing $20 billion in U.S. dollar-denominated bonds, marking its largest-ever dollar-denominated offering and exceeding the initial target of $15 billion. Peak investor demand reached $103 billion. At that time, the company also made its debut in Swiss and British bond markets with a rare century bond issuance, becoming the first technology company to price a 100-year bond since the dot-com bubble of the 1990s.

Globally, bonds tied to artificial intelligence themes have reached approximately $300 billion in issuance volume. Recent bond offerings by large cloud service providers have shown signs of investor fatigue, leading investment banks to offer more favorable terms and higher yields to attract selective investors.

On April 30, Meta Platforms completed a $25 billion bond offering. Concerns over the profitability of its AI investments contributed to the company's stock experiencing its largest single-day decline in six months. Nearly all six tranches of the bond carried higher risk premiums compared to its October issuance, reflecting increased investor demand for yield compensation. Additionally, peak demand for this offering was lower than in the previous round.