Alphabet is issuing a rare 100-year sterling bond as part of a multi-currency financing effort worth around $20 billion to support major investments in AI and data centers.
The £1 billion issue attracted nearly 10 times the demand, reflecting strong interest from institutional investors such as pension funds and insurers looking for long-term assets to match their liabilities.
The move comes as hyperscaler technology companies are raising debt to historic levels, with the sector’s issuance forecast to hit $3 trillion over the next five years. Alphabet itself expects capex to hit $185 billion this year.
Some strategists see the century-long bond issuance as a sign of market excitement about AI, especially in an environment of tight credit spreads and tech equity valuations at record highs.
However, other analysts stress that the move also reflects a smart funding strategy that diversifies funding sources across currencies and broadens the investor base.
However, observers warn that 100-year issuance remains “untested” for corporate borrowers, with technological risks and long-term market cycles difficult to predict.
