Alphabet Plans $25 Billion Bond Sale with 2-40 Year Maturities

Alphabet, the parent company of Google, plans to raise up to $25 billion through an investment-grade dollar bond offering. According to people familiar with the matter, the order book for the sale reached approximately $115 billion, more than four times the deal size, making it the third-largest investment-grade bond issuance by subscription in 2026, trailing only Oracle's February offering, which drew $129 billion in orders, and Amazon's March bond sale, which attracted $126 billion in subscriptions.

The offering is divided into 10 tranches with maturities ranging from 2 to 40 years. The longest-dated bond carried an initial price guidance spread of about 155 basis points over U. S. Treasuries, which was later tightened to 130 basis points at final pricing. Alphabet also told investors through underwriters that it plans to issue dollar bonds twice a year on a regular basis going forward.

In February 2026, Alphabet had sold $20 billion in bonds, a deal that drew about $103 billion in demand. Since then, the company has also issued bonds denominated in Swiss francs, pounds sterling, euros, Canadian dollars, and yen, bringing its total debt issuance in the first half of 2026 to more than $50 billion. It also completed an equity offering of nearly $85 billion. In its latest earnings report, Alphabet raised its 2026 capital expenditure forecast to as much as $205 billion, more than double its 2025 spending level. The heavy capital outlays led to the company's first quarterly negative free cash flow since its initial public offering.

Following the launch of the new bond sale, spreads on Alphabet's February 2026 dollar bonds widened. As of 10:28 a. m. Eastern Time, spreads had widened by 6 to 12 basis points from the previous day's closing levels. The bond issuance news also pushed U. Treasury yields higher across the curve, with yields rising 3 to 4 basis points. The 10-year Treasury yield climbed to approximately 4.65%, with long-dated bonds leading the decline and the yield curve steepening. Earlier, Amazon had issued a similar amount of debt a month ago, and a BlackRock affiliate sold $12.5 billion in bonds for Meta Platforms' data center project in Texas, which saw weak initial demand. This week's total investment-grade bond issuance has reached $80 billion, marking the third-largest weekly volume of 2026.