Alphabet, Google's parent company, plans to issue $5 billion (approximately 7.2 trillion won) in corporate bonds, Bloomberg reported on the 28th (local time). This will be Alphabet's first corporate bond issuance since 2020 when it issued $10 billion, and the company plans to issue its first bonds in Europe as early as the 29th.
The corporate bonds will be issued in four categories based on maturity, with the longest-term bond of $1.5 billion having a maturity of 40 years, set at a yield 70 basis points (1 basis point = 0.01 percentage points) higher than Government Bonds. This is down from the initially proposed maximum of 105 basis points.
Bloomberg noted that this issuance might signal a larger-scale share buyback and investment in artificial intelligence (AI). As of the end of last month, Alphabet held over $95 billion in cash and securities.
This week, the U.S. bond market expects the issuance of $35 billion in corporate bonds, larger than last week's $25 billion and the $6 billion earlier this month. Fifteen corporations, including Alphabet, are set to issue bonds, marking the largest number since 16 corporations issued bonds on the 24th of last month.