HONG KONG, Aug 19 (Reuters) – Alphabet has raised A$5.5 billion ($3.89 billion) via its inaugural Australian dollar debt issuance, according to a term sheet seen by Reuters, adding to the hectic pace of fundraising by global tech companies.
The U.S. tech giant raised the amount by issuing 3-, 5-, 10- and 20-year bonds, the term sheet showed. The company set the coupon at 6.9% for the longest tenure bond tranche, according to the term sheet.
Alphabet did not immediately respond to a request for comment from Reuters.
Global tech companies are increasingly looking to capital markets to fund their massive AI spending, after having typically relied on their large cash reserves to fund investments.
The firms are expected to spend more than $730 billion this year primarily on AI, and the outlay is already squeezing cash flows. Alphabet posted its first ever negative free cash flow in its second-quarter report in late July.
($1 = 1.4136 Australian dollars)
(Reporting by Sumeet Chatterjee; Editing by Sonia Cheema)
