Alphabet kicks off €6 billion bond sale, tests appetite for tech debt

Alphabet, the parent company of Google, recently issued €6 billion in bonds, testing investor interest amid recent volatility in tech stocks and debt. The bonds, with maturities ranging from 2 to 19 years, are being offered in seven tranches and have a combined demand of approximately €17 billion. The company intends to use the proceeds for general corporate purposes, potentially including debt repayment.

The sale marks Alphabet's second euro-denominated bond issuance this year, following a €9 billion offering in May. Investors have been cautious due to concerns about financing for AI investments and the returns needed to justify those investments. The tech-heavy Nasdaq fell 5% in October, while Alphabet's shares dropped more than 12% after disappointing quarterly results.

Despite the recent setback, analysts predict that major tech companies will continue to tap European debt markets to fund infrastructure investment.