Overview
- Alphabet sold a £1 billion sterling‑denominated 100‑year bond in February 2026 as part of a larger multi‑currency debt raise to fund massive AI infrastructure spending.
- The note was heavily oversubscribed at launch, with order books reported at roughly ten times the offering size, attracting long‑dated buyers such as pension funds and insurers.
- The bond fell below 90 pence on the pound on Thursday, July 23, 2026, meaning investors who bought at par have lost about 10% of principal in months since issuance.
- Analysts say the drop is driven by extreme duration sensitivity to higher long‑term yields — which rose after late‑February Middle East strikes and a cooling in big US tech stocks — rather than a sudden weakening of Alphabet’s credit.
- The issuance was notable as the first 100‑year corporate tech bond since the 1990s and one of few sterling century issues, and its sell‑off could cool appetite for similarly long dated corporate paper and reshape asset allocation for long‑term investors.