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Alphabet Enters Kangaroo Market With First Australian Dollar Bond

The deal broadens Alphabet's investor base to fund heavy AI investments as cash flow tightens.

Overview

  • Bookrunners ANZ, Deutsche Bank, RBC Capital Markets and TD Securities have been mandated to arrange Alphabet’s inaugural AUD bond in a move reported on Aug. 16–17.
  • Alphabet is considering 3-, 5-, 10- and 20-year tranches with the 3- and 5-year notes possible as fixed or floating rate issues and the 10- and 20-year notes planned as fixed rate.
  • The company has not disclosed how much it plans to raise or the pricing and final maturity mix for the AUD transaction.
  • The AUD plan extends an aggressive 2026 borrowing program that has already included very large U.S. dollar deals, a 100-year sterling bond and Swiss franc tranches.
  • LSEG data show Kangaroo issuance about A$60 billion year-to-date, which gives foreign issuers strong investor demand and could encourage more tech firms to borrow in Australian dollars.