This article first appeared on GuruFocus.
Alphabet Inc. (GOOGL, Financials), the Google parent, is preparing its first Australian dollar bond offering as it taps global capital markets to help finance rising artificial intelligence spending.
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The company has hired ANZ, Deutsche Bank, RBC Capital Markets and TD Securities to arrange the transaction, according to a bookrunner message reviewed by Reuters.
Alphabet is considering 3-, 5-, 10-, and 20-year bonds. The shorter maturities could carry fixed or floating rates, while the longer-dated debt would use fixed rates. The size of the offering has not been disclosed.
The potential sale follows a much larger financing push. Alphabet raised $25 billion through dollar bonds earlier in August after completing an almost $85 billion equity offering in June.
The timing matters because AI investment is putting more pressure on cash generation across Big Tech Alphabet reported its first negative quarterly free cash flow in July as spending on data centers, chips and other AI infrastructure accelerated.
For investors, the Australian bond sale is another sign that Alphabet is becoming more willing to use external financing rather than rely only on its historically large cash reserves.