Alphabet, the parent company of Google, is moving forward with a major debt-raising initiative that includes the sale of a rare 100-year bond, a milestone move for a technology firm.
According to reports, Alphabet initially offered US$20 billion (€16.8 billion) in U.S. dollar-denominated bonds, but strong investor demand led to massive oversubscription. In response, the company expanded its debt issuance and included a century-long bond in sterling markets, marking one of the rare instances in modern corporate finance of such long-dated debt from a tech company. The last similar issue was from Motorola in 1997.
The 100-year bond allows Alphabet to lock in financing for a century, effectively stretching the maturity far beyond typical corporate debt horizons, which tend to range from 5 to 30 years. Century bonds have become more common among sovereigns and some utilities seeking long-term capital, but remain unusual for technology companies, whose financing needs have traditionally been met with shorter maturities or equity financing.
Analysts say the move reflects Alphabet’s strong credit profile, deep investor confidence, and a favourable interest-rate environment that has encouraged buyers to take on long-term risk. By tapping multiple currencies, the company can also match liabilities with its global revenue streams and potentially take advantage of attractive borrowing conditions outside of the U.S. dollar market.
The proceeds from the expanded debt sale are expected to support a range of corporate purposes, including capital expenditure, investments in artificial intelligence and cloud infrastructure, share buybacks, and refinancing of existing debt. Alphabet has consistently generated robust cash flow, and the decision to issue long-dated bonds suggests the company is taking a strategic approach to managing its balance sheet and cost of capital over the long term.
Investors often view century bonds as a statement of financial strength, since they require confidence in a borrower’s long-term viability. Alphabet’s ability to price and place such a bond underscores its position as one of the most well-capitalised and creditworthy companies in the global market.
The multi-currency offer also expands the pool of potential buyers. Issuing in sterling and other markets can attract European and global institutional investors seeking long-duration assets with stable yield, broadening participation beyond traditional U.S. dollar investors.
While century bonds carry interest-rate risk over extremely long timeframes, they can offer issuers predictable financing costs that hedge against future market volatility. For a company like Alphabet, with diversified revenue streams across advertising, cloud services, hardware, and emerging technologies, the strategic use of long-term debt fits a broader financial strategy focused on durability and growth.
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