Alphabet issued a new bond offering totaling $22.48 billion, comprising $15 billion in senior unsecured U.S. dollar notes and €6.5 billion (approximately $7.48 billion) in senior unsecured euro notes, to be sold in eight tranches.
The offering follows a $5 billion U.S. dollar and €6.75 billion euro issuance in May and a €6.75 billion euro issuance earlier in 2025, marking a series of debt issuances aimed at supporting Alphabet’s growth plans.
Proceeds will be used for general corporate purposes, including capital expenditures for data center expansion, AI chip development, and other growth initiatives, and to support the company’s AI and cloud infrastructure strategy.
Alphabet’s management highlighted the need to fund its projected $91‑$93 billion annual capital expenditures for AI and cloud, noting that the new debt will strengthen its balance sheet and provide flexibility for future investments.
The company’s Aa2/AA+ credit rating allows it to secure favorable terms, and the bond offering includes maturities ranging from 3 to 39 years, with some tranches extending to 50 years.
Alphabet’s AI‑driven revenue grew over 200% year‑over‑year in Q3 2024, and Google Cloud revenue increased 35% to $11.4 billion, underscoring the strategic importance of the new financing.
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