Sou Hu Cai Jing·2025-11-03 16:35Core Viewpoint - Alphabet, the parent company of Google, is returning to the European bond market for the second time this year to raise funds for record capital expenditures in artificial intelligence (AI) and cloud infrastructure [1][3]. Group 1: Bond Issuance Details - The company is marketing six tranches of euro-denominated benchmark bonds with maturities ranging from 3 to 39 years, aiming to raise at least €3 billion (approximately ¥24.659 billion) [3]. - The three-year bonds are priced about 60 basis points above mid-swap rates, while the longest maturity bonds are priced approximately 190 basis points above mid-swap rates [3]. - This marks Alphabet's second entry into the euro bond market in 2025, following an earlier issuance that raised €6.75 billion earlier this year [3]. Group 2: Financial Performance and Investment Focus - The bond issuance coincides with a surge in demand for the company's cloud services and AI business, with third-quarter revenue rising to $87.5 billion [3]. - The company is investing record amounts in AI development, with projected capital expenditures for the full year 2025 expected to reach between $91 billion and $93 billion [3]. - Revenue from products based on Google's generative AI models has seen a year-on-year increase of over 200% [3]. Group 3: Use of Proceeds and Credit Rating - Proceeds from the bond issuance will be used for general corporate purposes [4]. - Alphabet currently holds a credit rating of Aa2 from Moody's and AA+ from S&P [4]. - Goldman Sachs, HSBC, and JPMorgan are serving as global coordinators and joint bookrunners for the issuance, with additional participation from BNP Paribas, Crédit Agricole CIB, and Deutsche Bank [4].