Alphabet Inc., the parent company of Google, is launching a multi-tranche senior unsecured notes offering in both U.S. dollar and euro debt markets. The technology conglomerate will use the proceeds for general corporate purposes, which may include repaying a portion of its existing debt.
Reuters reported that Alphabet’s last debt issuance in April, when it raised 6.75 billion euros ($7.87 billion) in its inaugural euro market offering.
Alphabet’s latest bond offering aligns with a noticeable trend among major technology firms seeking capital through debt markets. In September, Oracle secured $18 billion in new debt, while Meta raised $30 billion through a bond offering in the same month.
Google owner Alphabet to tap US dollar, euro bond markets https://t.co/GJECca21eD https://t.co/GJECca21eD
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According to Moody’s Ratings, which reported on the offering on Monday, this activity reflects growing capacity demands within the sector. “These corporations are saying they’re capacity constrained,” stated Emile El Nems, a senior credit officer at Moody’s.
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The company maintains a dominant market position through its core services, including the Google search platform, which has now integrated its Gemini AI. Its advertising and YouTube businesses also continue to hold leading market shares.
Analysts note that Alphabet, along with peers like Oracle and Meta, carries less leverage than many other companies, making them attractive to debt investors. This financial health provides a strong foundation for raising capital to fund future growth initiatives, particularly in the high-demand fields of cloud computing and artificial intelligence. A representative for Alphabet did not immediately respond to a request for comment.