Key Takeaways
- • Alphabet is seeking to raise about $3 billion equivalent through its first bond sales denominated in Hong Kong and Singapore dollars, according to two people with knowledge of the matter cited by Reuters.
- • The offering would likely raise at least $2.2 billion, with minimum sizes of HK$8 billion ($1 billion) for the Hong Kong dollar tranche and S$1.5 billion ($1.2 billion) for the Singapore dollar tranche.
- • HSBC and JPMorgan are joint global coordinators; Bank of China (Hong Kong), ICBC (Asia) and Standard Chartered are working on the Hong Kong dollar portion, and DBS, OCBC and UOB on the Singapore dollar portion.
- • The bonds are expected to be rated Aa2 by Moody's and AA+ by S&P, with settlement on November 19; final size, timing and pricing had not been set.
- • The sale adds to Alphabet's 2026 borrowing, which already includes $45 billion of US dollar notes and $35.8 billion of foreign currency notes through September, as it expands spending on data centres and AI infrastructure.
Summary
Alphabet, the parent of Google, is looking to raise about $3 billion equivalent through its first bond sales in Hong Kong and Singapore dollars, two people with knowledge of the matter told Reuters. The move tests Asian investor demand following an AI-led selloff in global markets earlier in the month. One of the people said the sales would likely raise at least $2.2 billion, with Alphabet considering minimum sizes of HK$8 billion ($1 billion) for the Hong Kong dollar portion and S$1.5 billion ($1.2 billion) for the Singapore dollar portion. The final size, timing and pricing have not been set.
The deal is expected to launch as early as Thursday, with bookbuilding and pricing during Asian trading hours and settlement on November 19. According to a term sheet seen by Reuters, Alphabet has mandated HSBC and JPMorgan as joint global coordinators. The bonds are expected to be rated Aa2 by Moody's and AA+ by S&P. Bank of China (Hong Kong), ICBC (Asia) and Standard Chartered are also working on the Hong Kong dollar sale, while DBS, OCBC and UOB are handling the Singapore dollar portion. The Hong Kong dollar bonds could carry two-, five- and 10-year maturities, while the Singapore dollar bonds could include two-, five-, 10- and 30-year tenors.
The offering would add to Alphabet's borrowing this year as it increases spending on data centres and other AI computing infrastructure. In an October 29 filing, Alphabet said it had issued $45 billion of US dollar-denominated notes and $35.8 billion of foreign currency notes in the nine months to end-September for general corporate purposes. The company also raised €6 billion ($6.7 billion) through a euro-denominated bond sale last week, and sold $25 billion of US dollar bonds and A$5.5 billion ($3.8 billion) of Australian dollar bonds in August. Other large technology companies have also tapped debt markets, with Meta completing a $15 billion US bond sale and Oracle selling $10 billion of bonds last week. Alphabet did not immediately respond to a request for comment.
The deal is expected to launch as early as Thursday, with bookbuilding and pricing during Asian trading hours and settlement on November 19. According to a term sheet seen by Reuters, Alphabet has mandated HSBC and JPMorgan as joint global coordinators. The bonds are expected to be rated Aa2 by Moody's and AA+ by S&P. Bank of China (Hong Kong), ICBC (Asia) and Standard Chartered are also working on the Hong Kong dollar sale, while DBS, OCBC and UOB are handling the Singapore dollar portion. The Hong Kong dollar bonds could carry two-, five- and 10-year maturities, while the Singapore dollar bonds could include two-, five-, 10- and 30-year tenors.
The offering would add to Alphabet's borrowing this year as it increases spending on data centres and other AI computing infrastructure. In an October 29 filing, Alphabet said it had issued $45 billion of US dollar-denominated notes and $35.8 billion of foreign currency notes in the nine months to end-September for general corporate purposes. The company also raised €6 billion ($6.7 billion) through a euro-denominated bond sale last week, and sold $25 billion of US dollar bonds and A$5.5 billion ($3.8 billion) of Australian dollar bonds in August. Other large technology companies have also tapped debt markets, with Meta completing a $15 billion US bond sale and Oracle selling $10 billion of bonds last week. Alphabet did not immediately respond to a request for comment.
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