Alphabet Inc (NASDAQ:GOOG) is preparing to raise as much as A$5 billion through its first Australian-dollar bond sale, potentially setting a record for the country’s corporate debt market.
The Google parent is considering 3-year, 5-year, 10-year and 20-year tranches. The shorter maturities may be offered with fixed or floating interest rates, while the longer-dated notes would carry fixed rates.
Known as a “Kangaroo” bond because it is issued in Australian dollars by a foreign borrower, the transaction would broaden Alphabet’s funding sources as it accelerates investment in artificial intelligence infrastructure.
The proposed raising is expected to be between A$4 billion and A$5 billion. If completed at the top of that range, it would surpass Apple’s A$2.25 billion transaction from more than a decade ago as Australia’s largest corporate bond issue.
ANZ, Deutsche Bank, RBC Capital Markets and TD Securities have reportedly been appointed to manage the sale.
The Australian offering follows Alphabet’s recent activity across international debt markets, including US-dollar, yen, sterling, euro, Swiss franc and Canadian-dollar bonds.
Alphabet recently increased its 2026 capital expenditure guidance to between US$195 billion and US$205 billion, from US$180 billion to US$190 billion, primarily due to faster deployment of capacity to meet demand.
Capital expenditure reached US$44.9 billion in the second quarter, with most directed towards technical infrastructure supporting AI. The investment contributed to negative quarterly free cash flow of US$5.9 billion, although Alphabet ended the period with US$242.5 billion in cash and marketable securities.
