Alphabet Inc. completed its first Australian dollar bond sale on Tuesday, raising A$5.5 billion ($3.89 billion) across four maturities to fund expanding capital expenditures.
The offering included bonds due in 3, 5, 10, and 20 years, with the longest-dated tranche carrying a 6.9% coupon rate. The issuance reflects broader trends in global technology financing as firms increasingly turn to debt markets to support high-cost AI infrastructure projects.
The move follows Alphabet’s second-quarter earnings report in late July, which showed the company posted its first negative free cash flow amid elevated spending. Industry estimates project global tech firms will allocate over $730 billion this year to AI-related investments, straining liquidity positions traditionally bolstered by cash reserves.
The bond sale was executed at an exchange rate of $1 to 1.4136 Australian dollars, according to market data.
