Google’s 100-year bond sees orders 10 times the offering size

Alphabet, Google’s parent, raised more than $30 billion in a single day through corporate bond issuance.

According to Bloomberg, after raising $20 billion in US dollar-denominated bonds the previous day, Alphabet on the 10th (local time) raised an additional more than $10 billion via sterling- and Swiss franc-denominated bonds, bringing the total to $32 billion (about 46.4 trillion won). The company’s corporate bond sale in the UK and Switzerland exceeded each country’s record for a single issuer.

A particularly closely watched issuance of ultra-long “100-year maturity” notes also concluded successfully. In the UK market, demand surged to nearly 10 times the deal size (£1 billion). The bonds were priced at a yield 1.2% points above UK 10-year gilts.

With this issuance, Alphabet has now secured most of the funding for its capital expenditure plan announced for this year (CAPEX of $185 billion). As of the end of last year, Alphabet held $126 billion in cash, and raised more than $30 billion through this bond sale. It also demonstrated its ability to fund at relatively lower rates than competitors. The spread Alphabet paid over Treasuries on its dollar bonds this month was 0.95% points for long-dated maturities—lower than Oracle (2.25% points) and Meta (in the 1%-plus range).

Reporter Han Kyung-je hankyung@hankyung.com