Alphabet plans its first bond offering in Hong Kong and Singapore dollars

Alphabet recently held talks with investors and banks about a potential first bond issuance in Hong Kong and Singapore dollars totaling up to $3 billion, Bloomberg reports, citing sources.

The company discussed the debt offering earlier in November, sources told the agency. According to them, the company plans to raise the equivalent of between $1 billion and $1.5 billion in Hong Kong dollars and approximately $1.5 billion in Singapore dollars. The proceeds will be used for general corporate purposes.

Sources interviewed by the agency noted that negotiations are ongoing and the terms of the deal may still change. In response to the agency’s inquiry, Alphabet stated that it does not comment on market rumors.

Alphabet shares rose nearly 1% in premarket trading on November 9.

The potential deal will test investor interest in Asia following the sell-off of artificial intelligence-related stocks, Bloomberg notes. The sell-off was triggered by growing investor concerns that regulatory oversight of AI projects would tighten following the Democrats’ success in the U.S. midterm elections. Credit spreads for some technology issuers have widened. This is accelerating a reassessment in the global debt market, where borrowing for AI development has already pushed yields higher, the agency notes.

In August, Alphabet issued bonds denominated in Australian dollars for the first time, as well as bonds denominated in Swiss francs, British pounds, Canadian dollars, and Japanese yen. In early November, the company raised €6 billion ($6.7 billion) through a euro-denominated offering. This marks the company’s second euro-denominated offering since May, and it borrowed at a significantly higher cost than the previous time. Investors demanded higher yields due to growing concerns about the massive costs of artificial intelligence, Bloomberg notes.

This article was AI-translated and verified by a human editor