Alphabet, the parent company of Google, announced on Monday its plan to issue yen-denominated bonds for the first time. This move aligns with a broader trend among major technology firms leveraging the debt market to finance their costly artificial intelligence infrastructure projects.
Alphabet did not disclose the specific size of the offering. However, a source familiar with the transaction, who requested anonymity as they were not authorized to speak publicly, indicated the total issuance is expected to reach several hundred billion yen, with terms likely finalized this month. The company has not commented on the potential size.
Mizuho Securities, Bank of America, and Morgan Stanley have been appointed to lead the bond offering. Morgan Stanley did not immediately respond to a request for comment, while Bank of America and Mizuho Securities declined to comment.
This strategic shift sees leading global tech companies turning to debt markets to fund their ambitious AI strategies, moving away from the traditional Silicon Valley model of relying primarily on internal cash reserves for investments.
Global spending on AI infrastructure by major tech firms is projected to surpass $700 billion this year, a significant increase from $410 billion in 2025.
In a related development, e-commerce giant Amazon.com is also preparing its first-ever Swiss franc bond issuance, according to media reports citing informed sources. The reports state that Amazon.com has enlisted BNP Paribas, Deutsche Bank, and JPMorgan to arrange a six-tranche bond offering with maturities ranging from 3 to 25 years. Amazon.com, BNP Paribas, Deutsche Bank, and JPMorgan have not responded to requests for comment.
Data from the London Stock Exchange Group shows this will be Alphabet's inaugural yen bond issuance. The company's announcement last week revealed it had already raised nearly $17 billion through two bond offerings: one for 9 billion euros (approximately $10.6 billion) and another for 8.5 billion Canadian dollars (approximately $6.2 billion).
In late April, Alphabet increased its annual capital expenditure forecast by $5 billion, revising the range to $180–$190 billion, with plans for another significant increase in capital spending by 2027.
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