Alphabet launches multi-billion dollar bond deal

• Alphabet plans to raise up to $5.5 billion in its debut Australian dollar bond offering.
• The 20-year tranche of the debt is indicated to price at a yield of about 6.95%.
• The company stated that the fundraising supports broader corporate investments in artificial intelligence infrastructure.

Alphabet (NASDAQ:GOOGL) executed an agreement to raise up to $5.5 billion through a multi-part debt offering in the Australian market.

The technology company secured investor demand exceeding $20 billion for the transaction.

The elevated borrowing costs reflect multi-decade high yields seen globally rather than any shift in the creditworthiness of the business.

Alphabet stated that the capital will help finance ongoing corporate initiatives and artificial intelligence infrastructure.

The company will pay a spread of 180 basis points over the local benchmark for the 20-year portion of the debt.

Global technology firms continue to tap international debt markets to secure funding for capital-intensive artificial intelligence projects this year.

Following the announcement, the Alphabet share price was up at $341.28.