Alphabet eyes inaugural Australian dollar bond, bookrunner's message says
Bookrunners on the transaction
ANZ, Deutsche Bank, RBC Capital Markets and TD Securities are joint lead managers on the Alphabet transaction, the book runner's message said.
Possible structure of the deal
The 3- and 5-year bonds could be issued with fixed or floating rates, the message said, while the 10- and 20-year bonds would be issued with fixed rates.
Alphabet plans inaugural Australian dollar bond
Alphabet has mandated investment banks to work on its inaugural Australian dollar bond issue, according to a message sent by one of the book runners and reviewed by Reuters on Monday.
The U.S. tech giant is considering issuing 3-, 5-, 10- and 20-year bonds, it said.
The message did not outline how much Alphabet could raise in the transaction or its plans with the proceeds.
Alphabet did not immediately respond to a request for comment from Reuters.
Alphabet's recent funding and AI spending backdrop
Alphabet raised $25 billion in dollar bonds earlier in August following an almost $85 billion equity capital raising in June.
Global tech companies are increasingly looking to capital markets to fund their massive AI spending, after having typically relied on their large cash reserves to fund investments.
The firms are expected to spend more than $730 billion this year primarily on AI, and the outlay is already squeezing cash flows. Alphabet posted its first ever negative free cash flow in its second-quarter report in late July.
