Google’s stock fell at the market open following its first issuance of bonds denominated in British pounds and Swiss francs, including an extremely rare 100-year bond.
Alphabet, the parent company of Google, issued pound sterling and Swiss franc-denominated bonds for the first time, including a rare 100-year bond, following a $20 billion mega-deal completed in the United States. According to informed sources, the company will issue five tranches of pound sterling and Swiss franc bonds. This 100-year pound sterling bond marks the first time a technology company has issued such long-term debt since the internet bubble era.
At the beginning of the market on Tuesday,$Alphabet-C (GOOG.US)$ / $Alphabet-A (GOOGL.US)$Down nearly 3%.
The issuance plan for pound-denominated bonds includes maturities ranging from 3 to 32 years as well as a 100-year bond. The issuance plan for Swiss franc bonds includes maturities of 3 years, 6 years, 10 years, 15 years, and 25 years. Informed sources stated that both bond issuance plans are expected to be priced later today.
Jack Daley, portfolio manager at TwentyFour Asset Management, said: ‘The European market is able to absorb this supply. Demand for the pound issuance will be strong, especially because a transaction of this size will occupy a larger share in the index.’
On Monday, Alphabet raised $20 billion through a seven-tranche US dollar bond issuance, surpassing the previously expected $15 billion. At its peak, the issuance attracted over $100 billion in subscriptions, marking one of the strongest records in corporate bond issuance history. This set the tone for today’s issuance. All US dollar-denominated bonds appreciated in the secondary market, and Daley commented: ‘This indicates robust market demand for these bonds.’
The previous record-breaking corporate bond issuance in the pound sterling market was by $National Grid (NGG.US)$, which raised a total of £3 billion ($4.1 billion) through a four-tranche issuance in 2016. In the Swiss franc market, Roche Holdings issued a record-breaking CHF 3 billion ($3.9 billion) bond in 2022.
This massive debt deal follows Alphabet’s announcement that its capital expenditure this year could reach $185 billion (double last year’s amount) to fund its ambitious goals in artificial intelligence.
including $Meta Platforms (META.US)$and$Microsoft (MSFT.US)$Other technology companies, including those mentioned, have also announced significant spending plans for 2026. Morgan Stanley predicts that the giant cloud computing companies, known as hyperscale data centers, will reach a borrowing amount of $400 billion this year, up from $165 billion in 2025.
However, such enormous borrowing needs have already begun to raise concerns about potential pressure on bond valuations.
A rare century bond in the technology sector.
Data shows that Alphabet’s century bond represents the first time a technology company has issued such an ultra-long-term bond since Motorola did so in 1997. The century bond market is primarily dominated by institutions such as governments and universities. For corporations, factors such as potential acquisitions, outdated business models, and technological upgrades make such deals extremely rare.
Alex Ralph, co-portfolio manager of the Nedgroup Investments Global Strategic Bond Fund, stated, “For most companies, I cannot find a reason to purchase bonds with such long maturities – especially for a company operating in a rapidly changing market environment. Additionally, century bonds often signal a market top.”
Nevertheless, demand from UK pension funds and insurance companies has made the sterling market the preferred venue for issuers seeking long-term financing.
In recent years, global companies have increasingly turned to the Swiss franc bond market to diversify their debt financing solutions. In 2025, this includes $Thermo Fisher Scientific (TMO.US)$technology firms and construction machinery manufacturers$Caterpillar (CAT.US)$U.S. companies, including the firm, issued Swiss franc bonds.
Alphabet’s most recent entry into the euro bond market was in November last year, raising 6.5 billion euros (7.7 billion US dollars). Data shows that, combined with another bond issuance earlier this year, Alphabet will become the largest borrower in the euro bond market in 2025.
Bank of America, Goldman Sachs, and JPMorgan were responsible for arranging the two bond issuances, with Barclays,$HSBC Holdings (HSBC.US)$and NatWest also participating in the issuance of the pound sterling bonds. BNP Paribas and Deutsche Bank participated in the issuance of the Swiss franc bonds.
Editor/Rocky
