Alphabet, Google's parent company, has begun roadshows for its first Hong Kong dollar and Singapore dollar bond offerings. According to Sina Finance, the deal will test investor appetite as market volatility increases for companies focused on artificial intelligence (AI).
A person familiar with the matter said Alphabet plans to offer two-, five- and 10-year Hong Kong dollar bonds, with initial price guidance of around 4.6%, 5% and 5.5%, respectively. The company is also marketing two-, five-, 10- and 30-year Singapore dollar bonds, with guidance of around 2.75%, 3.25%, 3.65% and 4%, respectively. Proceeds will be used for general corporate purposes, potentially including repayment of outstanding debt. The bonds could be priced as early as Thursday, the person said.
The offering comes at a challenging time for technology-sector bond issuers. A broad market sell-off last week was driven by concerns that a major Democratic victory in the U.S. midterm elections could bring greater scrutiny of data center development and AI infrastructure spending. Investors have since become more cautious about AI-related assets.
Market turbulence sparked by AI chip leader Nvidia has also affected the broader sector. Nvidia has been working with an outside company to identify potential successors to CEO Jensen Huang.
Global hyperscalers are seeking financing for AI-related projects and tapping new bond markets, with Alphabet's offering part of that trend. The company issued Australian dollar bonds for the first time in August and has also issued Swiss franc, pound sterling, Canadian dollar and Japanese yen bonds this year.