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(Bloomberg) -- Google parent Alphabet Inc. led the biggest rush in months into Europe’s bond market on Tuesday, as borrowers seized on improving investor sentiment to raise cash.
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The tech giant is set to raise €6.75 billion ($7.7 billion) from a debut sale of euro bonds in a rare five-part offering, the standout deal among the 20 borrowers coming to the market. They brought a total 27 tranches of debt, the most in a single day since Jan. 7, according to data compiled by Bloomberg.
The sales came as companies took advantage of a recovery in credit markets following a slide stoked by US President Donald Trump’s trade announcements. Tariff-induced swings in sentiment had put some deals on hold, and given the uncertainty over policies in the world’s biggest economy going forward, there’s no telling when the next bout of volatility will start.
That drew issuers including the Republic of France, retailer Carrefour SA and insurer Ethias SA, as well as a junk-rated deal from German drugmaker Stada Arzneimittel AG. In total, borrowers are set to raise over €28 billion, with final sizes set but not all deals priced yet.
Robust investor demand was also seen in the US on Monday, where 15 borrowers in the high-grade primary market raised $18.3 billion and compressed spreads by more than average. That included a $5 billion sale of dollar debt by Alphabet, its first since 2020.
Euro Debut
Alphabet’s euro deal tops that for size. It includes maturities of between four and 29 years, according to a person familiar with the matter, who asked not to be identified. The final spreads tightened by around 30 basis points from initial discussions, taking the shortest tranche to 52 basis points over mid-swaps and the longest to 160. The deal is expected to price later today.
The deals could lower its cost of capital and indicate the potential for larger future buybacks and AI capital investments, Bloomberg Intelligence analysts Robert Schiffman and Alex Reid wrote on Monday. The company is not lacking money: they point to Alphabet’s $95 billion cash balance and the ability to generate close to $300 billion in free cash flow over the next three years.
Its 29-year bond in euros would be the second-longest corporate bond sold in Europe this year, data compiled by Bloomberg shows. The company plans to use the proceeds of the sale for general corporate purposes, including the repaying of outstanding debt.