Published Tue, Apr 29, 2025 · 04:33 PM
[CALIFORNIA] Google parent Alphabet is looking to raise at least 2.5 billion euros (S$3.72 billion) from a debut euro bond sale on Tuesday (Apr 29), just after selling US$5 billion of debt in the US.
The tech company is offering an unusual five-part deal with benchmark sizes and maturities between four and 29 years, according to a person familiar with the matter, who asked not to be identified. The deal is expected to price later today.
Initial price discussion for the offerings are from around 85 basis points over mid-swaps for four-year tranche, to around 190 basis points above for the 29-year securities, the person said, which are likely to tighten throughout the day.
The sale comes as companies rush to raise funding after credit markets recovered much of their initial slide stoked by President Donald Trump’s trade announcements. US tariff-induced swings in sentiment put some deals on hold, and given the uncertainty over the policies of the world’s biggest economy going forward, there’s no telling when the next bout of volatility will start.
Alphabet’s sale could lower its cost of capital and indicates the potential for larger future buybacks and AI capital investments, Bloomberg Intelligence analysts Robert Schiffman and Alex Reid wrote on Monday. The company is not lacking money: they point to Alphabet’s US$95 billion cash balance and the ability to generate close to US$300 billion in free cash flow over the next three years.
The company plans to use the proceeds of the sale for general corporate purposes including the repaying of outstanding debt.
Its dollar offering on Monday was the company’s first since 2020. The 29-year bond in euros would be the second-longest corporate bond sold in Europe this year, data compiled by Bloomberg shows. BLOOMBERG
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