Alphabet Raises $1.5 B with 100-Year Notes at 4.125% Coupon
Alphabet sold $1.5 billion of 100-year notes at a 4.125% coupon, marking its longest-dated debt ever. The issuance diversifies its funding mix and locks in historically low rates to support cash needs amid higher borrowing costs.
1. Issuance Details
Alphabet priced $1.5 billion of 100-year bonds at a 4.125% coupon, settling in March 2026. The notes represent the company’s first triple-digit maturity, broadening its debt maturity profile beyond its existing mix of 5- to 30-year notes.
2. Strategic Rationale
Management cited the move as an opportunity to lock in long-term financing at a fixed rate ahead of anticipated rate volatility. The sale reduces refinancing risk on shorter-dated maturities and aligns debt duration with long-range capital needs.
3. Market Context
Demand for ultra-long corporate debt remains robust, driven by insurers and pension funds seeking stable yields. Alphabet’s ability to access 100-year funding at just over 4% demonstrates strong credit standing despite broader market rate pressures.