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Google’s Alphabet Plans to Raise $2.8 Billion in Bond Sale
Google’s parent company, Alphabet Inc., is planning to raise about $2.8 billion in a bond sale in Europe. This big move comes right after Alphabet raised $5 billion in debt in the United States just a day before. The company wants to use the money from these bond sales to pay off some of its old debts and to help with other general business needs.
This new bond sale is a bit special because Alphabet is offering five different parts, with loans that will last anywhere from 4 years to as long as 29 years. The interest rates they are offering to investors will start from about 85 basis points above a certain financial benchmark for the shortest loan, and go up to around 190 basis points for the longest one. The exact prices will be decided later today.
Alphabet Plans to Raise $2.8 Billion in Bond Sale at a time when many companies are trying to get money after the credit markets started to recover. This recovery happened after some uncertainty caused by trade announcements from the U.S. government. Because the future of trade policies is still unclear, Alphabet wants to act quickly to secure funds while the market conditions are good.
The $2.8 billion Alphabet bond sale will be managed by some big banks like Goldman Sachs, HSBC, and JPMorgan Chase, along with Barclays and Deutsche Bank. The 29-year bond part of the sale will be one of the longest corporate bonds sold in Europe this year, showing how confident Alphabet is about the future.
Even though Alphabet is raising this money, the company is not short on cash. It has about $95 billion in cash and other marketable securities right now. Plus, experts say Alphabet is expected to make nearly $300 billion in free cash flow over the next three years. So, this bond sale is more about smart financial planning than needing money urgently.
Google’s Alphabet Plans to Raise $2.8 Billion in Bond Sale also comes after the company shared its first-quarter results for 2025. Alphabet reported total revenue of $90.2 billion, which is a 12% increase compared to last year. Most of this money came from Google services like Search, YouTube ads, subscriptions, and Google Cloud. YouTube ads alone brought in $8.9 billion, showing how important these services are for the company.
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The money Alphabet raises from these bonds will help the company pay off some debts and could also help it invest more in new technologies like artificial intelligence. Analysts believe this could lower Alphabet’s overall cost of borrowing and give it more flexibility for future business growth.
Google’s Alphabet bond sale is a smart move to keep the company strong financially while preparing for the future. It shows that even big companies like Alphabet are careful about how they manage their money and plan for growth.
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