American tech behemoth Alphabet (GOOGL.US) has successfully raised A$5.5 billion (approximately US$3.89 billion) through its debut Australian dollar bond offering, adding another chapter to the intensifying wave of global technology companies tapping debt markets, according to term sheets seen by foreign media.

The term sheet reveals that Alphabet's issuance spans four tranches with maturities of 3, 5, 10, and 20 years, with the longest-dated 20-year bond carrying a coupon of 6.9%. As of press time, Alphabet had not responded to requests for comment. This marks the company's inaugural entry into the Australian dollar bond market, with long-term borrowing costs approaching 7%, potentially setting a record high coupon for the company.

According to an email guidance from lead underwriter ANZ Bank, Alphabet will price a multi-tranche Australian dollar bond on Wednesday (August 19), with the indicative yield on the 20-year tranche at approximately 6.95%—the longest maturity segment of the offering—though final pricing remains subject to change.

This bond sale follows Alphabet's US$25 billion US dollar debt issuance earlier this month. Global technology firms are increasingly turning to capital markets to fund their massive artificial intelligence investments, a shift from their historical reliance on internal cash reserves. These companies are projected to spend more than US$730 billion on AI this year, with hefty capital expenditures squeezing cash flows.

Morgan Stanley estimates that global AI-related debt issuance could approach US$570 billion in 2026, more than doubling last year's figure. In the first quarter of this year alone, the five largest hyperscale computing companies issued US$115 billion in bonds, compared with approximately US$70 billion for the entirety of 2025.

Alphabet reported its first-ever negative free cash flow in its second-quarter earnings released at the end of July. Capital expenditures surged to US$44.9 billion, pushing free cash flow to negative US$5.855 billion. Just one quarter earlier, the company had recorded positive free cash flow of US$10.1 billion.