Alphabet Plans Rare 100-Year Sterling Bond to Fund AI Expansion

Alphabet is preparing to issue a rare 100-year sterling bond as part of a broader multi-currency debt offering, marking a notable move to expand its long-term borrowing strategy to support growing investments in artificial intelligence. According to a report by the Financial Times, the century bond will be included in Google’s parent company’s debut issuance in the UK sterling bond market, citing sources familiar with the matter.

Ultra-long-term bonds, especially 100-year bonds, are highly uncommon in the technology sector. One of the few historical precedents is IBM’s century bond issued in 1996. In the sterling market, such bonds are even rarer, with only a handful of issuers such as the University of Oxford, EDF, and the Wellcome Trust having sold century bonds, the most recent issuance dating back to 2018. These instruments were more common during the prolonged low interest rate environment after the global financial crisis but remain exceptional in today’s corporate finance landscape.

Alphabet’s move comes as part of a larger multi-currency bond strategy. The company successfully sold $20 billion in U.S. dollar-denominated bonds on Monday, significantly exceeding its original plan of $15 billion due to strong investor demand. In addition to the dollar and sterling offerings, Alphabet is also arranging a bond sale denominated in Swiss francs, further underscoring its diversified funding approach.

Bankers involved in the transaction told the Financial Times that Alphabet’s multi-currency debt issuance is designed to broaden its global investor base while securing long-term capital. Big Tech companies are facing increasing capital requirements as they race to develop and deploy advanced AI technologies, including data centers, cloud infrastructure, and specialized chips.

By tapping multiple bond markets and considering ultra-long maturities, Alphabet aims to lock in funding over extended periods while aligning its financing structure with long-term AI investment horizons. The strategy highlights growing investor appetite for high-quality corporate debt and signals how major technology firms are adapting their capital-raising strategies to meet the financial demands of the AI era.