The Zhitong Finance App learned that, according to people familiar with the matter, Alphabet (GOOGL.US) has recently discussed the possibility of issuing Hong Kong dollar and Singapore dollar bonds for the first time. At a time when the global market is fluctuating due to the sell-off in artificial intelligence (AI) related sectors, this deal will test the willingness of Asian investors to subscribe.
People familiar with the matter said that Alphabet may have communicated with banks and investors about bond issuance as early as this month. According to people familiar with the matter, the company plans to issue HKD bonds worth 1 billion to 1.5 billion US dollars, and Singapore dollar bonds worth about 1.5 billion US dollars. The above sources added that the funds raised will be used for general corporate purposes. People familiar with the matter said that related discussions are still ongoing, and details are still subject to change.
The world's largest cloud computing service providers, including Alphabet, Microsoft (MSFT.US), Amazon (AMZN.US), and Meta Platforms (META.US), are borrowing and financing at an unprecedented speed while promising tens of billions of dollars to build AI capabilities. As the construction of data centers, AI chips and cloud computing infrastructure continues to accelerate, technology giants' demand for capital continues to increase, and the bond market has become an important channel for them to raise long-term capital.
Multi-currency financing has become a new choice for tech giants
As they seek to raise more capital for AI projects, large cloud computing service providers are expanding debt financing channels to target markets they have never entered before. In August of this year, Alphabet first issued Australian dollar bonds. Additionally, the company issued Swiss franc, pound, Canadian dollar, and yen denominated bonds this year.
Technology giants expand the scale of multi-currency financing. On the one hand, it helps broaden the investor base and access funding sources in different regions. On the other hand, it can also diversify financing dependence on the single bond market and prevent large-scale issuance of US dollar bonds from further increasing market supply pressure. Previously, as AI infrastructure investment drove a surge in corporate debt financing needs, technology companies have begun to make more use of markets such as Europe, Canada, and Asia to raise capital.
Just last week, Alphabet raised 6 billion euros (about 6.7 billion US dollars) through a single Eurobond issued over multiple terms. This is the second time this year that the company has issued Eurobonds. The bond is divided into seven maturity levels, ranging from 2 to 19 years. Investors' subscription requirements exceed 17 billion euros, indicating that the market still has some interest in Alphabet bonds.
However, as market concerns about the growth rate of AI spending and the return on investment heat up, the financing costs paid by Alphabet this time are significantly higher than when the company first issued Eurobonds in May this year. This shows that even high-credit-rated tech giants like Alphabet need to provide investors with more attractive financing conditions against the backdrop of rising AI capital expenditure and increasing bond supply.
AI capital expenditure surges, and the bond market faces supply pressure
Tech giants such as Alphabet continue to increase debt financing, which is closely related to the rapid expansion of their AI infrastructure investment scale. Alphabet previously predicted that capital expenditure could reach up to US$205 billion in 2026, mainly for data centers and other AI infrastructure construction. Furthermore, as of the end of September 2026, the company has signed but has not yet begun to implement leasing agreements such as data centers, etc., and future payments amount to US$13.5 billion. This part of the commitment has not yet been included in the balance sheet.
Looking at the industry as a whole, AI infrastructure construction is driving large technology companies into a new round of financing cycle. According to the media's previous analysis of market data, as of the beginning of July 2026, the total amount of bonds issued by Amazon, Alphabet, Meta, and Oracle (ORCL.US) this year has reached about US$194 billion, an increase of 79% over the scale of about US$108 billion for the full year of 2025. Goldman Sachs expects the five major cloud computing service providers, including Microsoft, to issue bonds of about 250 billion US dollars in 2026, and further rise to about 400 billion US dollars in 2027.
As the supply of bonds increased, investors' attitudes towards tech companies' debt also began to change. The market not only pays attention to issuers' credit quality, but also places more emphasis on whether AI infrastructure investments can bring sufficient returns on revenue and cash flow. For investors, the larger the scale of AI spending, the more attention the future financing costs and debt repayment pressure companies will have to bear.
Credit spreads widen, and AI return on investment becomes the focus of the market
Alphabet's potential launch comes at a time when investors are worried that AI-related projects may face stricter scrutiny after the Democratic Party's big victory in the US midterm elections. Credit spreads for some technology issuers have widened, hastening the ongoing repricing of global bond markets. Previously, the AI boom encouraged companies to borrow heavily, which in turn boosted bond yields.
According to FTSE Russell data, as of October 2026, the average option-adjusted interest rate spread (OAS) of major cloud computing service provider bonds had risen to 119 basis points, higher than the overall US investment-grade corporate bond index of 86 basis points. Since December 2025, interest spreads on major cloud computing service provider bonds have increased by about 31 basis points, while the spread of the overall investment-grade corporate bond index has only increased by about 1 basis point during the same period. This change reflects that as the scale of AI-related bond issuance expands, investors are requiring large technology companies to pay higher risk compensation for new debt.
For bond investors, the current core issue is not only whether tech giants can continue to obtain financing, but whether their huge AI capital expenses can eventually be converted into sufficient commercial returns. If the commercialization of AI applications falls short of expectations, or if companies are unable to cover continuously rising infrastructure investment through additional revenue, rising financing costs and pressure on cash flow may further affect the market's risk assessment of related corporate debt.
Therefore, Alphabet's potential issuance of Hong Kong dollar and Singapore dollar bonds is not only another step to expand financing channels in Asia, but will also be an important window for observing global investors' attitudes towards AI financing needs and solvency of large technology companies.