Alphabet just convinced investors to lend it money for a hundred years. And those investors practically fought over the privilege.
The biggest tech century bond in decades
This isn’t just a large bond sale. It’s the first major technology company to issue a century bond since Motorola did it back in 1997. That’s almost three decades of no Big Tech firm daring to ask the market for a 100-year commitment.
The sterling tranche was part of a much larger capital raise. Alphabet’s total debt issuance exceeded $31.5 billion, anchored by a $20 billion US dollar bond sale that generated orders surpassing $100 billion at peak demand. There were also Swiss franc tranches in the mix.
The yield on the century bond landed at approximately 6.05%. The +120bps spread over gilts reflects the kind of tight pricing that only the highest-quality corporate issuers can command.
