Alphabet Inc. (GOOGL) is reportedly looking to raise about A$5 billion ($3.6 billion) through its first Australian dollar bond sale, according to Bloomberg. GOOGL stock is up by 0.70% in pre-market hours on Monday. The company’s latest bond sale shows how it is turning to debt markets to help fund its AI spending. Notably, Chamath De Silva, head of fixed income at Betashares said, “It is a historic moment for the Australian corporate bond market.”
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Two ETFs for long or short leverage on SPCXSilva added that “Not only is it Alphabet’s first-ever Australian dollar bond, but it’s also the first AI hyperscaler to access the Australian dollar market and the first US large-cap technology company to issue a Kangaroo bond in almost a decade.” If successful, the deal would become the largest corporate debt issue ever sold in Australia. Apple (AAPL) currently holds the record after raising $2.25 billion in the Australian bond market more than a decade ago.
More Details on Alphabet’s AU Bond Sale
According to people familiar with the matter, the U.S. tech giant is considering bonds with 3-, 5-, 10-, and 20-year maturities. The 3- and 5-year notes could carry fixed or floating rates, while the 10- and 20-year bonds would have fixed rates.
ANZ, Deutsche Bank, RBC Capital Markets, and TD Securities are working on the deal. Initial pricing guidance could come as early as Tuesday, with the bonds potentially priced the following day. Alphabet did not make any official announcement.
Mark Bayley, a portfolio manager at Kapstream, said, “We’re absolutely interested.” He added, “It’s probably the equivalent of the SpaceX (SPCX) IPO for the corporate bond market. Everybody has been talking about AI coming. Is the Australian market big enough? Is it not big enough? I think that’s been answered.”
Alphabet Taps Bond Market Again
Earlier this month, Alphabet raised $25 billion through a dollar bond sale. Bloomberg reported that the company attracted about $115 billion in investor orders, showing strong demand for its debt. The bond sale followed an $8.48 billion equity offering in June to help fund Alphabet’s AI plans.
The need for funding has grown as Alphabet ramps up capital spending. In Q2 2026, Alphabet raised its 2026 capex plan by $15 billion. The company now expects to spend $195 billion to $205 billion this year. The company also reported negative free cash flow of $5.9 billion, marking the first negative quarterly free cash flow in its history as a public company.
Is GOOGL Stock a Buy, Sell, or Hold?
Alphabet stock has a consensus Strong Buy rating among 30 Wall Street analysts. That rating is based on 25 Buys and five Holds issued in the last three months. The average GOOGL price target of $422.59 implies a 22.17% upside from current levels.
