Alphabet Inc. debuted in the Australian dollar bond market with a multi-part offering to raise A$5.5 billion ($3.5 billion). The sale attracted over A$18 billion in investor demand. Tranches include maturities ranging from 3 to 20 years.
The 20-year portion yields 6.98%, marking Alphabet's highest coupon rate on record. This rate reflects a global rise in borrowing costs. The move diversifies Alphabet's debt portfolio following a $25 billion U.S. dollar bond sale and a June equity offering.
Alphabet intends to use these 2026 fundraising efforts to finance its artificial intelligence ambitions. Separately, Google announced a strategic shift to automate frontline deployment engineering tasks using AI. This initiative aims to improve operational efficiency.