Alphabet raises $3.9 billion in inaugural Australian dollar bond

Alphabet, the U.S. tech giant, has successfully raised A$5.5 billion ($3.89 billion) through its first Australian dollar bond issuance, as revealed in a term sheet obtained by Reuters. This marks the company's debut in raising debt in Australian dollars. The funding was achieved by issuing bonds with maturities ranging from 3 to 20 years, according to the term sheet.

Notably, the longest-duration bond carries a coupon rate of 6.9%. Despite not providing immediate comment, Alphabet is part of a broader trend of global tech companies exploring capital markets to fund their substantial investments in artificial intelligence (AI). The sector is projected to see investments surpassing $730 billion this year, significantly straining cash flows.

Notably, Alphabet recorded its first-ever negative free cash flow in its second-quarter report, published late July.