US$32 billion in debt was issued in one day! Google is

# Zhao Ying

After Alphabet completed a $20 billion bond offering, it subsequently issued bonds denominated in British pounds and Swiss francs, with both transactions setting corporate bond issuance records in their respective markets. The pound-denominated deal included an extremely rare 100-year bond — the first ultra-long-dated bond issued by a technology company since the dot-com bubble era. Analysts noted that century bonds tend to be issued at market peaks.

Alphabet raised nearly $32 billion of debt in less than 24 hours, underscoring the massive funding needs of tech giants to build out artificial intelligence capabilities, as well as the strong willingness of credit markets to provide financing.

On Monday, shortly after Alphabet, Google’s parent company, completed a $20 billion bond issuance, it priced pound- and Swiss franc-denominated bonds, both setting new records for corporate bond sales in their markets. The pound offering included a very rare 100-year maturity — the first such ultra-long tenure by a tech firm since the internet bubble period.

Demand was strong, with the overall pound bond offering attracting record orders, and the 100-year portion nearly 10 times oversubscribed. The massive financing comes shortly after Alphabet announced capital expenditures of up to $185 billion this year — double last year’s level — to support its AI ambitions.

The financing spree highlights the funding pressure on big tech amid the AI race. Morgan Stanley estimates that borrowing by hyperscale cloud companies will surge to $400 billion this year, up from $165 billion in 2025.

## Record multi-market financing strategy

Alphabet’s pound-denominated deal reached £5.5 billion ($7.5 billion), far exceeding the previous corporate bond record in the pound market — the £3 billion issued by National Grid Plc in 2016. In the Swiss franc market, Alphabet’s issuance also surpassed the previous record of 3 billion Swiss francs ($3.9 billion) set by Roche Holding.

Its broad placement across multiple markets and tenors allowed it to attract a wide range of investors — from asset managers and hedge funds to pension funds and insurers with a preference for long-dated paper. The pound offering spanned multiple maturities: the shortest three-year bond was priced at a spread of 45 basis points over UK gilts, while the 100-year bond offered a spread of just 1.2 percentage points.

According to Bloomberg data, Alphabet only entered the euro bond market last November, raising €6.5 billion ($7.7 billion). Including its early-year offerings, the company became the largest borrower in the euro market in 2025.

## Rare return of the century bond

Alphabet’s 100-year bond marks the first time a technology company has issued such long-dated debt since Motorola in 1997. The century bond market is typically dominated by governments and universities. For corporations, risks including potential takeovers, business model obsolescence and technological displacement make such deals extremely rare.

Even so, the £1 billion century bond was nearly 10 times oversubscribed. Strong demand from UK pension funds and insurers has made the pound market a top choice for issuers seeking long-term financing.

“I cannot justify holding such long-dated paper for most companies — especially those operating in a constantly evolving environment,” said Alex Ralph, co-portfolio manager of the Nedgroup Investments Global Strategic Bond Fund. “Century bonds tend to be issued at market tops.”

## AI arms race fuels borrowing wave

The financing came less than a week after Alphabet announced capital expenditures of up to $185 billion for this year. Software giant Oracle recently also raised $25 billion for its AI initiatives, attracting $129 billion in orders.

Other tech firms including Meta and Microsoft have also announced massive spending plans for 2026. Morgan Stanley projects that total borrowing by hyperscale cloud companies will reach $400 billion this year, up from $165 billion in 2025.

“Hyperscalers will keep issuing debt in size,” said Andrea Seminara, chief executive officer at London-based hedge fund Redhedge Asset Management. “They need to issue more and are therefore testing all available pools of capital and investor appetite. Other hyperscalers will do the same.”

The heavy borrowing demand from big tech has started to raise concerns about potential pressure on bond valuations. The securities are expensive by historical standards. Some investors also worry about the sustainability of the AI boom and its disruptive impact on related sectors such as software-as-a-service.

Both Alphabet and Oracle have taken steps to ease investor concerns about heavy supply. Alphabet tapped a series of typically niche markets to raise large sums without overwhelming demand, while Oracle limited deal size to control the amount of debt coming to market.

Bank of America Corp, Goldman Sachs Group Inc and JPMorgan Chase & Co arranged the pound and Swiss franc offerings. Barclays Plc, HSBC Holdings Plc and NatWest Group Plc also worked on the pound transaction, while BNP Paribas SA and Deutsche Bank AG participated in the Swiss franc deal.

Source: Wallstreetcn

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