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Alphabet kicks off €6 billion bond sale, tests appetite for tech debt
Reuters • • business
Key Points:
- Alphabet is offering new bonds in seven tranches with total demand exceeding €17 billion, featuring maturities from 2 to 19 years, including one floating-rate and six fixed-rate tranches.
- This marks Alphabet's second euro-denominated bond sale in 2023, following a €9 billion sale in May and a rare 100-year sterling bond sale in February.
- The company plans to use the net proceeds for general corporate purposes, potentially including repayment of outstanding debt, with Barclays, BNP Paribas, and Deutsche Bank managing the offering.
- Alphabet's shares experienced a significant drop of over 12% last Thursday due to slower-than-expected growth and cash burn concerns, wiping out roughly $500 billion in market value; however, shares were up about 1% in premarket trading on Monday.
- Analysts anticipate increased bond sales by major tech firms in Europe to fund infrastructure investments, leveraging the region's deep and liquid debt markets.
