Alphabet launches second euro bond issuance of the year

TechFlow reported that on November 2, Alphabet, Google's parent company, launched its second euro bond issuance of the year, structured in seven tranches, marking another recent initiative by major technology companies to raise capital for artificial intelligence investments. According to a person familiar with the matter, the maturities of Alphabet's bond issuance range from two years to 19 years. Initial price guidance for the shortest-term fixed-rate bond sits at approximately 60 basis points above the mid-term swap rate, while the spread for the longest-term bond is priced at around 205 to 210 basis points.

Barclays, BNP Paribas, and Deutsche Bank are managing the bond offering, which is expected to price later on Monday. As the scale and pace of such bond issuances continue to accelerate, investors are beginning to show signs of fatigue. Weaker demand for recent bond offerings has forced issuers to price at wider spreads, driving up debt financing costs. (Jin10)