Google’s parent company, Alphabet, is seeking to raise $3 billion through its first bond sales in Hong Kong and Singapore dollars, according to sources. The move comes as the company looks to gauge interest from Asian investors following an AI-led selloff in global markets earlier this month.
Alphabet reportedly plans $3 billion bond sale in two Asian markets
The bond sales would likely raise at least 2.2 billion, one of the sources said. Alphabet is considering minimum sizes of HK$8 billion ($1 billion) in Hong Kong dollars. Similarly, it’s looking at a $1.5 billion ($1.2 billion) in Singapore dollars. The final bond size, timing, and pricing are not final yet, as per the source. However, the sale could be launched as early as Thursday, with bookbuilding and pricing expected during Asian trading hours.Â
The bonds may settle on November 19. Alphabet has reportedly appointed HSBC and JPMorgan as the joint global coordinators for the bond sale. The bonds will apparently receive an Aa2 rating from Moody’s and AA+ from S&P. Bank of China (Hong Kong), ICBC (Asia), and Standard Chartered will handle the Hong Kong dollar portion, while DBS, OCBC, and UOB will manage the Singapore dollar sale, as per the term sheet seen by Reuters.
It’s not just Alphabet
The Hong Kong dollar bonds could have maturities of two, five, and 10 years. Meanwhile, the Singapore dollar bonds could have maturities of two, five, 10, and 30 years, according to the term sheet. The sale would add to Alphabet’s borrowing this year as it increases spending on data centers and other AI computing infrastructure.
In an October 29 filing, Alphabet said it issued $45 billion in US dollar-denominated bonds and another $35.8 billion in foreign-currency bonds in the first nine months for general corporate purposes. The company last week raised €6 billion ($6.7 billion) through a euro-denominated bond sale. It also sold $25 billion of US dollar bonds and 5.5 billion (3.8 billion) Australian dollar bonds in August.
Besides Google, other large tech companies have also taken this route. Last week, Meta raised a $15 billion US bond sale, and Oracle sold $10 billion in bonds.
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