Alphabet, the parent company of Google, has made a significant return to the euro bond market, announcing plans to issue bonds across six tranches with a total value of at least €3 billion (equivalent to approximately $3.5 billion). Among these offerings, the bond with the longest maturity—set to mature in 2063—initially offers a price guidance that includes a premium of around 205 basis points above the mid-swap rate. The funds raised from this bond issuance, along with proceeds from other financing activities, will be allocated to the company’s general corporate purposes, including the repayment of existing debt. This year, Alphabet has earmarked capital expenditures of up to $190 billion, with a strong focus on investments in data centers.

Alongside Alphabet, the tech quartet of Meta Platforms, Microsoft, and Amazon are collectively planning to invest up to $725 billion in AI-related sectors this year. Previously, Alphabet set a benchmark by issuing $20 billion in dollar-denominated bonds. At present, the global issuance of AI-themed bonds has surged to roughly $300 billion. However, the recent wave of bond issuances by major tech cloud service providers has led to investor fatigue, compelling investment banks to enhance incentives in order to attract buyers.

On April 30, Meta Platforms finalized the pricing and issuance of $25 billion in bonds. Nevertheless, concerns regarding the return on its AI investments caused its stock price to decline sharply. The risk premium on the bonds issued by Meta Platforms this time is higher compared to last year, and the peak subscription rate has also fallen short of the previous round.