Alphabet mulls Singapore, HK bond sale as AI fears fuel volatility
Investors worry about closer scrutiny of AI projects after Democratic gains in the US midterms.
Alphabet, the parent company of Google, is reportedly considering issuing its first bonds denominated in Hong Kong and Singapore dollars, according to sources familiar with the matter. The potential debt sale could raise between US$1 billion and US$1.5 billion in Hong Kong dollars, and a similar amount in Singapore dollars. The funds would be used for general corporate purposes, but details of the deal remain fluid.
The move comes as global hyperscalers, such as Alphabet, Microsoft, Amazon.com, and Meta Platforms, broaden their search for debt financing beyond their usual markets. They are seeking additional capital to fund their AI projects. Alphabet already has experience issuing bonds in various currencies, including Australian dollars, Swiss francs, British pounds, Canadian dollars, and Japanese yen.
The timing of the potential sale is notable, as investor concerns about increased scrutiny of AI-related projects have heightened. The Democratic gains in the US midterm elections have also contributed to the volatility in global markets. Credit spreads for technology issuers have widened, reflecting the broader repricing of risk in the global debt market, which has been fueled by the AI boom.
Alphabet declined to comment on the market speculation surrounding this potential bond issuance.
Written by urgent.news from Straits Times Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
