Alphabet is set to test investor appetite with a rare 100-year bond, reviving a structure unseen in tech since the dot-com era.
Summary:
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Alphabet is planning to issue a rare 100-year bond as part of a large multi-tranche debt sale.
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The century bond will be denominated in sterling, marking Alphabet’s debut in the UK bond market.
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Analysts say the deal reflects strong investor demand for long-dated, high-quality corporate credit.
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The issuance would be the first 100-year bond by a technology firm since the late 1990s.
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Such ultra-long maturities remain unusual for corporates due to business-model and technology risks.
Alphabet is preparing to issue an ultra-long 100-year bond as part of a sizeable debt offering, a move analysts describe as a bold signal of confidence and a test of investor appetite for extreme-maturity corporate credit.
The planned century bond will be denominated in sterling and form part of a broader multi-tranche sale in the UK market, marking Alphabet’s first ever issuance in the currency. The deal could be priced imminently, according to people familiar with the matter. Analysts say the structure reflects both favourable market conditions and the company’s ability to access long-term funding on attractive terms.
Issuance with such an extended maturity is exceptionally rare for technology companies. Data compiled by Bloomberg show that no major tech firm has sold a 100-year bond since Motorola did so in 1997, during the dot-com era. Since then, the market for century bonds has been dominated by sovereign issuers and select institutions such as universities, rather than corporates.
Analysts note that ultra-long debt is typically avoided by companies exposed to rapid technological change, given the risk that business models, competitive dynamics or entire industries may look radically different over such a long horizon. In that context, Alphabet’s move is seen as a statement about balance-sheet strength, longevity and diversification of funding sources.
The sterling focus of the transaction is also notable. Analysts say demand from UK and European investors for long-dated, high-quality credit has increased, particularly amid expectations that global interest rates may be closer to their peak. Locking in long-term funding in that environment can be attractive for issuers with strong cash generation and minimal refinancing risk.
For investors, the appeal lies in securing long-duration exposure to one of the world’s strongest corporate balance sheets. For Alphabet, analysts say the deal underscores financial flexibility and a willingness to exploit favourable market windows, even with unconventional structures.
If successful, the offering could reopen discussion around whether other top-tier corporates might eventually follow Alphabet into the century-bond market, though analysts stress such issuance is likely to remain the exception rather than the rule.
This article was written by Eamonn Sheridan at investinglive.com.