Alphabet boosts debt sale again as total raise exceeds $30 billion, sources say

Alphabet is expanding its bond issuance, with reports indicating it is on the verge of securing over $30 billion globally. This marks a significant jump from the $20 billion raised just days prior. According to sources acquainted with the transaction, the latest move involved raising approximately $11 billion in the European markets, specifically in sterling and Swiss francs. The demand for high-quality bonds from technology giants, particularly those at the forefront of artificial intelligence advancements, has been notably high. An earlier report from Bloomberg highlighted that Alphabet's total raised amount could be close to $32 billion. In its recent earnings announcement, Alphabet projected a staggering $185 billion in capital expenditures for this year, which is more than double the anticipated spending for 2025. The tech sector, including major players like Amazon, Meta, and Microsoft, is expected to collectively invest nearly $700 billion by 2026. Meta is also gearing up for a substantial debt offering to support its expansion of data centers across the United States. With tech companies investing heavily in expensive chips, large facilities, and advanced networking technology, analysts predict a significant decline in free cash flow this year. In November, Alphabet conducted a $25 billion bond sale, which brought its long-term debt to approximately $46.5 billion by 2025. CFO Anat Ashkenazi emphasized during last week's earnings call the importance of maintaining a fiscally responsible investment approach while ensuring the organization remains in a robust financial position.