Alphabet Makes Debut in Sterling and Swiss Franc Bond Markets with Unprecedented Century Bond

Deep News
02/10

Alphabet has issued bonds denominated in British pounds and Swiss francs for the first time, including an exceptionally rare 100-year maturity, following a $20 billion bond offering in the United States.

According to unnamed sources familiar with the matter, both the pound and Swiss franc bond offerings were divided into five tranches by maturity. The 100-year pound bond marks the first time a technology company has issued such a long-term bond since the dot-com bubble era.

The pound bond tranches include maturities ranging from 3 years to 32 years, as well as the 100-year issue. The Swiss franc bonds feature maturities of 3, 6, 10, 15, and 25 years. The sources indicated that both bond transactions are expected to be priced later today.

On Monday, Alphabet raised $20 billion through a dollar-denominated bond offering divided into seven tranches, exceeding the previously anticipated $15 billion deal size. At its peak, the bond issuance attracted over $100 billion in orders, ranking among the strongest corporate bond sales in history.

This move comes less than a week after Alphabet announced that its capital expenditures could reach as high as $185 billion this year, doubling last year's amount, to fund its ambitious investments in artificial intelligence.

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