TOKYO, May 11 (Reuters) - Alphabet plans to sell Japanese yen-denominated bonds for the first time, it disclosed in a filing on Monday, as technology giants tap debt markets to fund artificial intelligence infrastructure deployments.
The Google parent did not disclose the size of the offering. The issuance is expected to total several hundred billion yen, said a source with direct knowledge of the deal, adding that the terms are expected to be decided this month.
The person was not authorized to speak
on the matter and declined to be identified. Alphabet did not immediately respond to a Reuters request on the offering size.
Alphabet has mandated Mizuho, Bank of America and Morgan Stanley to work on the transaction.
Morgan Stanley did not immediately respond to a request for comment, while Bank of America and Mizuho declined to comment.
The world's largest technology companies are tapping debt markets to fund costly artificial intelligence ambitions, in a shift from Silicon Valley's traditional reliance on cash for investments.
Big Tech is expected to spend more than $700 billion on AI infrastructure this year, a sharp increase from $410 billion in 2025.
Meanwhile, Amazon is preparing to issue Swiss franc bonds for the first time, Bloomberg News reported, citing a person familiar with the matter.
The e-commerce giant has mandated banks, including BNP Paribas, Deutsche Bank and JPMorgan Chase, for a debt offering in six parts, with maturity ranging from three to 25 years, the report said.
Amazon, BNP Paribas, Deutsche Bank and JPMorgan Chase did not immediately respond to Reuters' requests for comment.
Alphabet's yen bond sale would be its first issuance in the Japanese currency, according to LSEG data. It had last week raised almost $17 billion through two bond sales - a 9 billion euro ($10.6 billion) issue and a C$8.5 billion ($6.2 billion) issue, according to the company's filings.
In late April, it raised its annual capital spending forecast by $5 billion to between $180 billion and $190 billion, and said it was planning another significant increase in 2027.
($1 = 1.3689 Canadian dollars)
($1 = 0.8508 euros)
(Reporting by Miho Uranaka in Tokyo, additional reporting by Anhata Rooprai in Bengaluru; Writing by Scott Murdoch; Editing by Edwina Gibbs and Arun Koyyur)
