Alphabet Launches Major Pound and Swiss Franc Bond Offerings Totaling $9.4 Billion
Alphabet Inc., the parent company of Google, is embarking on a significant international debt financing initiative, seeking to raise at least US$9.4 billion through sterling and Swiss franc-denominated bond sales. This strategic move includes the issuance of an exceptionally rare 100-year corporate bond, marking a notable event in global financial markets. The announcement comes on the heels of Alphabet's successful US$20 billion seven-part dollar debt sale earlier this week, which surpassed initial expectations and attracted overwhelming investor interest.
Record-Setting Sterling Offering with Unprecedented Demand
The sterling component of this financing round is projected to reach a record-breaking £4.5 billion (approximately US$6.2 billion), according to sources familiar with the transaction who requested anonymity. This offering features a diverse range of maturities spanning from three to 32 years, alongside the headline-grabbing century bond. Market response has been extraordinary, with Alphabet reportedly receiving a staggering £24 billion in bids for the sterling tranche alone, demonstrating robust investor confidence in the technology giant's long-term prospects.
Swiss Franc Tranche and Broader Market Context
Simultaneously, Alphabet is launching a Swiss franc-denominated bond offering with a minimum target of 2.45 billion Swiss francs (roughly US$3.2 billion). This portion includes maturities of three, six, 10, 15, and 25 years. Both the sterling and Swiss franc deals are scheduled to price later today, following the positive momentum established by Monday's dollar debt sale, which attracted more than US$100 billion in orders at its peak—among the strongest corporate bond offerings in recent memory.
Financial analysts have noted the favorable market conditions for these offerings. "The market in Europe will be able to absorb this supply," commented Jack Daley, a portfolio manager at TwentyFour Asset Management. Regarding the sterling offering specifically, Daley added, "There will be a large demand, especially as a deal of this size will become a larger portion of the index." All tranches from Monday's dollar sale have already gained value in secondary markets, indicating sustained investor appetite for Alphabet's debt instruments.
Historical Significance of the 100-Year Bond
The inclusion of a 100-year bond in Alphabet's offering represents a remarkable development in corporate finance. According to Bloomberg data, this marks the first such extreme-maturity bond issuance by a technology company since Motorola's similar debt sale in 1997. The market for century bonds has traditionally been dominated by governments and institutional entities like universities, with corporate issuances remaining exceptionally rare due to concerns about long-term business viability, potential acquisitions, and technological obsolescence.
Some investment professionals have expressed caution about such extended maturities. "I could not justify taking such a long maturity bond in most companies—especially not one subject to an ever-changing landscape," stated Alex Ralph, co-portfolio manager of the Nedgroup Investments Global Strategic Bond Fund. Ralph further noted, "100-year bonds tend to have a habit of calling the top of a market as well."
Driving Forces Behind Alphabet's Aggressive Financing Strategy
This substantial debt issuance spree aligns with Alphabet's ambitious capital expenditure plans for the current year. The company has indicated that its capital investments could reach as high as US$185 billion in 2026—effectively doubling last year's spending—primarily to fund its expansive artificial intelligence initiatives and technological infrastructure development.
Alphabet is not alone in this aggressive financing approach. Other technology leaders, including Meta Platforms Inc. and Microsoft Corporation, have also announced substantial spending plans for 2026. Financial institution Morgan Stanley anticipates that borrowing by major cloud-computing companies, often referred to as hyperscalers, could surge to approximately US$400 billion this year, up significantly from US$165 billion in 2025. While this demonstrates strong sector growth, some market observers have begun expressing concerns about potential pressure on bond valuations as borrowing needs escalate across the technology industry.
The sterling bond sale, if successful as anticipated, would establish a new corporate record for the market, surpassing the previous benchmark set by National Grid Plc's £3 billion (US$4.1 billion) four-part sale in 2016. Similarly, in the Swiss market, Roche Holding AG's 2022 deal raising 3 billion Swiss francs currently holds the record that Alphabet's offering may challenge.
