Alphabet raises $3.9 billion in inaugural Australian dollar bond

The U.S. tech giant raised the amount by ⁠issuing 3-, 5-, 10- and 20-year bonds, the term sheet showed. The company set the coupon at 6.9% for the longest tenure bond tranche, according to the term sheet.

Alphabet did not immediately respond to a request for comment from Reuters.

Global tech ‌companies ⁠are increasingly looking to capital markets to fund their massive AI spending, after having typically relied on their large cash reserves ⁠to fund investments.

The firms are expected to spend more than $730 billion this year primarily on AI, and ⁠the outlay is already squeezing cash flows. Alphabet posted its first ever negative ⁠free cash flow in its second-quarter report in late July.

($1 = 1.4136 Australian dollars)