Alphabet has issued a rare 100-year sterling bond, becoming the first technology company to sell century-long debt since Motorola’s landmark offering in 1997. The bond, denominated in pounds sterling, forms part of a wider $20bn multi-currency fundraising programme and is expected to raise around $1bn. The issuance represents a bold vote of confidence in Alphabet’s ability to endure well into the next century, with the bond maturing in 2126.
Only a handful of organisations have previously issued sterling century bonds, including the University of Oxford, the Wellcome Trust and French energy group EDF. While countries such as Austria, Mexico and Argentina have sold similar ultra-long-dated debt in other currencies, Alphabet now joins a very exclusive corporate club.
Demand for the bonds was overwhelming. According to Bloomberg data, investor orders reached $100bn, around five times the size of the offering. The strength of appetite was reflected in broader markets, with the Nasdaq Composite rising 1pc as investors welcomed the successful deal.
The borrowing is being driven by Alphabet’s rapidly expanding capital expenditure plans, particularly in artificial intelligence. The company recently said it expects to spend between $175bn and $185bn this year on AI infrastructure, more than double the $91.4bn invested in 2025 and far above Wall Street forecasts of roughly $120bn for 2026. Chief financial officer Anat Ashkenazi said Alphabet remains in “a very healthy financial position” despite the surge in spending, underpinned by operating income of $129bn last year.
The bond sale is split into seven tranches across several currencies. The longest US dollar tranche matures in 2066, with pricing tightened from initial discussions of 120 basis points over US Treasuries to about 95 basis points following strong demand. JPMorgan, Goldman Sachs and Bank of America led the dollar portion, while Deutsche Bank, Royal Bank of Canada and Wells Fargo managed the sterling and Swiss franc tranches, including the century bond.
Analysts say the fundraising highlights the scale of the AI investment race. Morgan Stanley estimates Alphabet’s annual spending could reach $250bn by 2027, while total industry capital expenditure may climb to $3 trillion by 2029. Deutsche Bank said the outlay was helping build a “meaningful moat” against competitors, supported by projects such as Alphabet’s $40bn Texas data centre expansion.
Alphabet’s shares rose 2pc following the bond sale, even as market volatility edged higher. While some warn that runaway AI investment risks echoing past technology bubbles, the success of the century bond suggests investors have strong confidence in Alphabet’s long-term prospects. Founded just 28 years ago, the company now sits alongside centuries-old institutions in securing financing that stretches far into the future.
