Google parent Alphabet is looking to raise about $3 billion equivalent through its first bond sales in Hong Kong and Singapore dollars, two people with knowledge of the matter said, testing Asian investor demand after an AI-led selloff in global markets earlier this month.
One of the people added that the sales would likely raise at least $2.2 billion, with Alphabet considering minimum sizes of HK$8 billion ($1 billion) for the Hong Kong dollar portion and S$1.5 billion ($1.2 billion) for the Singapore dollar portion.
The final size, timing and pricing have not been set, the
person added.
The deal is expected to be launched as early as Thursday,
with bookbuilding and pricing during Asian trading hours,
according to the person. The bonds are expected to settle on
November 19, the person added.
The people declined to be named as the matter is private.
Alphabet has mandated HSBC and JPMorgan as
joint global coordinators, according to a term sheet seen by
Reuters earlier Wednesday. The bonds are expected to be rated
Aa2 by Moody’s and AA+ by SP, the sheet showed.
Bank of China (Hong Kong), ICBC (Asia) and Standard
Chartered are also working on the Hong Kong dollar
sale, while DBS, OCBC and UOB are
working on the Singapore dollar portion, the sheet showed.
The Hong Kong dollar bonds could have two-, five- and
10-year maturities, while the Singapore dollar bonds could have
two-, five-, 10- and 30-year maturities, the sheet showed.
Alphabet did not immediately respond to a request for
comment.
The sale would add to Alphabet’s borrowing this year as it
increases spending on data centres and other AI computing
infrastructure.
Alphabet said in an October 29 filing that it had issued $45
billion of US dollar-denominated notes and $35.8 billion of
foreign currency notes in the nine months to end-September for
general corporate purposes.
Alphabet last week raised€6 billion ($6.7 billion) through a
euro-denominated bond sale. It also sold $25 billion of US
dollar bonds in August and A$5.5 billion ($3.8 billion)
Australian dollar bonds in the same month.
Other large technology companies have also tapped debt
markets. Last week, Meta completed a $15 billion US bond sale
and Oracle sold $10 billion of bonds.
Source: Khaleej Times