Google’s Parent Alphabet Eyes Rs 23,000 Crore Fundraise – What’s The Plan?

Alphabet's Euro Bond Sale: After reporting a profit of USD 34.5 billion in the recently ended quarter, Google's parent firm Alphabet Inc. is set to raise USD 2.8 billion (approximately Rs 23,000 crore) via a debut euro bond sale on April 29 in the U.S.

Leading the wave of top companies looking at issuance of bonds, the tech giant has offered a five-part deal with reportedly benchmark sizes and maturities between four and 29 years, making this one of the longest dated corporate bonds in Europe in the ongoing year. The deal is expected to price later today.

In total, 15 firms are expected to tap the market, signaling stability post a volatile period.

As per initial discussion, the offerings are from around 85 basis points (BPS), over mid-swaps linked to four-yea tranche, to beyond 190 basis points for the 29-year-securities. The sale comes on the backdrop of corporate giants rushing to raise funds post credit markets recovering most of their initial slide induced by the U.S President Donald Trump’s trade announcements. However, the US tariff announcements have altered sentiments, leading to certain deals being placed on hold. The uncertainty prevalent in global cues, makes it difficult to predict the next bout of volatility.

The Cause And Effect Of Alphabet's Euro Bond Sale

The California-headquartered Alphabet's sale is expected to lower the cost of capital, signaling the potential for larger future buybacks and AI capital investments, as per a Bloomberg report. The tech giant has no shortage of cash given its current USD 95 billion cash balance, and the ability to garner USD 300 billion in free cash flow over the course of three years.

The company also plans to use the proceeds of the sale for general corporate purposes, including the repaying of outstanding debt.

On April 28, 2025, the dollar offering was Alphabet's first since 2020. 

The deal is being managed by Goldman Sachs Group Inc., HSBC Holdings Plc, and JPMorgan Chase & Co. as global coordinators, alongside bookrunners Barclays Plc and Deutsche Bank AG.