Alphabet, the parent company of Google, is set to issue the largest yen-denominated bond ever sold by a non-Japanese company. The move comes as hyperscalers — operators of large-scale data centers — flood the U.S. market with artificial intelligence-related debt, exhausting investor demand and prompting Big Tech to turn to foreign currencies.
According to the Nihon Keizai Shimbun on Saturday, Alphabet will issue 576.5 billion yen (about 5.4515 trillion won) in "global yen bonds" to domestic and overseas investors on the 21st of this month.
"This is the first time Alphabet has issued yen-denominated bonds," the Nikkei reported, adding that "it is the largest single yen-denominated bond issuance by a non-Japanese company, surpassing the volume issued by Berkshire Hathaway in 2019."
The bonds Alphabet will issue come in seven tranches by maturity — 3-year, 5-year, 7-year, 10-year, 15-year, 30-year, and 40-year. The 5-year tranche, the largest at 200.5 billion yen (about 1.8967 trillion won), carries a coupon of 2.412%. Morgan Stanley of the United States and Mizuho Securities are serving as lead managers for the bond issuance.
Industry observers cite expanding funding needs driven by the AI race as the backdrop for Alphabet's bond issuance. Alphabet has been sharply increasing investment in AI infrastructure such as data centers and projects capital expenditures of up to $190 billion (about 285 trillion won) in 2026.
Market analysts say cash flow pressure is mounting as the company faces the dual burden of investment expansion and shareholder returns. The issuance is also viewed as an effort to reduce reliance on the U.S. corporate bond market and diversify funding sources. In fact, Alphabet has issued bonds this year not only in dollars and yen but also in a variety of currencies including euros, pounds, Canadian dollars, and Swiss francs. Following Alphabet, Amazon also priced 2.8 billion Swiss francs (about 4.6 trillion won) in bonds in the Swiss market.
