Necessary Always Active
Necessary cookies are required to enable the basic features of this site, such as providing secure log-in or adjusting your consent preferences. These cookies do not store any personally identifiable data.
|
||||||
|
||||||
|
||||||
|
Published on
November 3, 2025
5 min read
Alphabet Taps €6.25 Billion Euro Bond Sale to Finance AI, Cloud Infrastructure
In Focus
- Alphabet is re-entering the Europe’s bond market
- The Google parent firm is offering 6 euro-denominated debt tranches
- The company seeks to raise at least €6.25 billion ($7.2 billion)
Google parent company Alphabet is tapping Europe’s bond market to raise funds for AI and cloud infrastructure. According to Yahoo Finance, the Alphabet AI bond sale is the second for the tech giant this year, highlighting the company’s strategy to diversify funding sources. In April 2025, Alphabet debuted in Europe’s debt market with a multi-trench debt sale of €6.75 billion.
How Much Will Alphabet Raise in Debt Sale?
In the latest debt sale, Alphabet will be offering six euro-denominated bonds whose maturities range from 3 to 39 years. People who are familiar with the deal say Alphabet’s AI funding bonds are expected to raise a minimum of €6.25 billion ($7.2 billion).
The three-year bonds are being priced about 25 basis points above mid-swaps, while the 39-year bonds are being marketed at around 158 basis points.
Alphabet’s Issuer Profile
- Debt distribution: GOOGL US Equity DDIS
- Capital structure: GOOGL US Equity CAST
- Related securities: GOOGL US Equity RELS
- Ratings history: GOOGL US Equity CRPR
Tech giants have been working to raise huge capital as they ramp up their AI spending.
Meta Platforms recently issued $30 billion in corporate bonds, which is the largest deal of the year in the U.S. dollar market.
Last week, Microsoft reported capital spending amounting to $35 billion in Q1 for the 2026 fiscal year, exceeding investor expectations.
Growing Demand for Cloud Services
Alphabet’s bond sale for AI expansion comes at a time when demand for cloud and AI services is surging. Alphabet’s third-quarter sales rose to $87.5 billion even as Google launched Gemini Enterprise to bring Google AI to every workflow.
The tech giant expects its capital expenditure for the year to range between $91 billion and $93 billion.
Revenue from Gemini AI-powered products is also expected to grow by 200% this year compared to last year. Proceeds from the latest Alphabet debt sale AI investment will be spent on general corporate purposes.
Alphabet’s AI Bond Sale at a Glance
- Alphabet has a high credit rating of Aa2/AA+
- AI bond sale will raise funds for AI and cloud infrastructure
- Alphabet issued a €6.75 billion euro bond sale earlier this year
Alphabet Enjoys High Credit Rating
With a market capitalization of approximately €3.4 trillion, Alphabet enjoys a high credit rating of Aa2/AA+ in the international market. The Aa2 rating is issued by Moody’s Investors Service, while AA+ is issued by S&P Global Ratings.
Alphabet generates revenue from Google services. Other revenue sources include subscription services such as YouTube Music, YouTube TV, devices like Chromebooks and Pixel smartphones; and platforms like Play Store.
Google’s cloud computing business contributes about 10% of Alphabet’s total revenue. Alphabet invests in emerging technologies includingWaymo, Verily, and Google fiber.
