Google parent Alphabet is considering launching a debut Hong Kong dollar-denominated bond offering as soon as this month, according to 9fin sources.
Such a deal would mark the first Hong Kong dollar-denominated bond issuance by any US hyperscaler. The Hong Kong dollar is pegged to the US dollar, virtually eliminating currency risk.
Deliberations are still ongoing and details regarding the transaction remain subject to change, the sources said.
Alphabet has aggressively diversified its debt issuance this year across currencies to fund its massive AI buildout, including an A$5.5bn ($3.84bn) kangaroo bond debut and a record $25bn bond sale in August. It has also raised cash in British pounds and Swiss francs.
A potential deal would come on the heels of Alphabet’s second euro-denominated bond sale this year. As 9fin reported, the firm’s euro deal comprised six fixed-rate tranches with maturities ranging from two years to 19 years. Counting the latest euro deal, Alphabet has raised almost $88bn-equivalent via bond issuances this year.
It would also come after one Chinese regulator told a summit hosted by the Hong Kong Monetary Authority this week that AI firms’ rush for capital has raised borrowing costsand increased financial burdens on traditional...
