Alphabet Inc. is exploring its first bond offerings in Hong Kong and Singapore dollars, people familiar with the matter said. The Google parent has spoken with banks and investors about a debt sale potentially as early as this month. The company aims to raise the equivalent of $1 billion to $1.5 billion in Hong Kong dollars and around $1.5 billion in Singapore dollars.
Proceeds would fund general corporate purposes. Discussions remain ongoing, and details could still change. This potential sale tests investor appetite in Asia following an AI-driven selloff in global markets.
Global hyperscalers are broadening their search for debt financing to new markets as they seek more cash for AI projects. Alphabet has previously issued Australian dollar, Swiss franc, British pound, Canadian dollar, and Japanese yen bonds this year. The timing coincides with increased investor scrutiny of AI projects after Democratic gains in the US midterm elections.
Credit spreads for technology issuers have widened, reflecting a broader repricing in the global debt market. A borrowing binge fueled by the AI boom has pushed up yields. Alphabet declined to comment on the market speculation.
Last week, Alphabet raised $6.7 billion through a multi-tranche euro bond sale, paying higher costs as AI spending concerns rose. Other hyperscalers, including Microsoft, Amazon, and Meta, have also been borrowing at a record pace while committing tens of billions to build AI capabilities.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing