Financial Times article titled "Alphabet lines up 100-year sterling bond sale" (published recently, around early February 2026).
Key Summary:
Alphabet (Google's parent company) is launching a major multi-currency bond issuance to finance its massive AI infrastructure investments, including a rare 100-year sterling "century bond" — one of the longest-dated bonds ever issued in sterling.
Main Details:
- Sterling tranche: Debut issuance this week, featuring a 100-year bond (maturing ~2126), plus shorter maturities (3, 6, 15, and 32 years). Pricing expected as early as Tuesday.
- Other currencies: $15bn in US dollar bonds (including a 40-year tranche) launching Monday, plus a separate Swiss franc bond sale.
- Bookrunners: Bank of America, Goldman Sachs, and JPMorgan.
- Context: Alphabet joins a small group issuing 100-year sterling bonds (e.g., University of Oxford, Wellcome Trust, EDF).
Broader Big Tech AI Funding Trend:
- Tech giants are turning to debt markets to fund ~$700bn in projected AI infrastructure spending this year (data centres, chips, etc.).
- Recent examples: Oracle raised $25bn last week (with $125bn in orders).
- Alphabet's capex plans: Up to $185bn this year — roughly double 2025 levels — to meet demand for its Gemini AI assistant.
- Alphabet's financials: Annual sales topped $400bn for the first time; long-term debt rose to $46.5bn in 2025 (4× prior year); cash holdings at $126.8bn.
- Recent borrowing: $17.5bn US bonds (including a 50-year tranche) and €6.5bn in Europe in November.
Outlook: This reflects the unprecedented scale of AI-related capital needs and Big Tech's growing reliance on debt (vs. cash flow) to fuel data-centre expansion. Alphabet's long-dated sterling bond sets a new precedent for ultra-long financing in that currency. |
