Google owner Alphabet issues record $10 billion bond at lowest-ever price
Google owner Alphabet issues record $10 billion bond at lowest-ever price
By Kate Duguid
NEW YORK, Aug 3 (Reuters) - Alphabet Inc borrowed $10 billion in the investment-grade corporate debt market on Monday, the Google parent's largest ever bond issue, which it secured at its lowest-ever cost of financing.
Of the $10 billion on offer, the $1 billion five-year tranche was issued at a coupon of 0.45%, the lowest coupon seen at that maturity since Apple Inc issued a $1.5 billion five-year note at 0.45% in 2013.
Investor appetite was fierce for the tech giant's six-part bond, as low interest rates and corporate bond buying from the Federal Reserve continues to support issuance. The deal garnered more than $31 billion in demand, according to Refinitiv IFR. Previously, Alphabet's lowest coupon was 1.25% on a $1 billion May 2014 note.
"We're at a stage where these extremely high-quality issuers - of which Alphabet is one - are going to price very very tight. That's because there are a lot of buyers who need short-term, don't-need-to-think-about-it money. You're getting two times the yield on the five-year Treasury," said Tom Graff, head of fixed income at Brown Advisory.
Last week Alphabet reported its first quarterly sales drop in its 16 years as a public company. Its share price was largely unmoved however, as the loss in sales was offset by a recovery in Google's ads business.
"There is a very narrow set of companies that were already super high quality, that are not impacted by this recession we're going through right now. And Google is one of them," said Graff.
Alphabet's five-year tranche priced just higher than Amazon.com's 0.40% three-year note issued in June, among the lowest corporate coupons ever recorded. Alphabet's 0.45% five-year tranche was however cheaper than Amazon's June 2020 offering at the same maturity, which priced at 0.80%.
Of the $10 billion offered, $4.5 billion from the seven-, 20- and 40-year tranches will be used for general corporate purposes, including acquisitions. The remaining $5.5 billion will be used for green initiatives, the company said, the largest-ever issue of corporate debt for environment, social and governance endeavors.
(Reporting by Kate Duguid in New York; Editing by David
Gregorio)
((kate.duguid@thomsonreuters.com; +646-223-6118; Reuters
Messaging: kate.duguid@thomsonreuters.com@thomsonreuters.net)
凱特·杜吉德
紐約，8 月 3 日（路透社）-Alphabet Inc 週一在投資級企業債務市場借了 100 億美元，這是谷歌母公司有史以來最大的債券發行，以有史以來最低的融資成本獲得了證券。
在發售 100 億元的五年期票中，10 億美元的票面以 0.45% 的票面發行，這是蘋果公司在 2013 年發行 15 億美元五年期票據 0.45% 以來的最低票息。
由於低利率和從美聯儲購買公司債券繼續支持發行，這家科技巨頭的六部分債券投資者對投資者的興趣很激烈。根據 Refinitiv IFR 的說法，該交易獲得了超過 31 億美元的需求。此前，字母表在 2014 年 5 月 10 億美元的票據中，最低票息為 1.25％。
「我們正處於這些極高質量的發行人（其中 Alphabet 是其中之一）價格非常緊張的階段。這是因為有很多買家誰需要短期, 不需要思考，關於它的錢.你的收益率是五年國庫的兩倍，」布朗諮詢公司固定收益負責人湯姆·格拉夫（Tom Graff）說。
上週 Alphabet 報告了其第一季度銷售額在其 16 年作為一家上市公司下降。但是，由於銷售損失被 Google 廣告業務復甦所抵消，因此股價大致上並未移動。
「有一組非常狹窄的公司已經擁有超高品質，這些公司不受我們現在正在經歷的經濟衰退的影響。而谷歌就是其中之一。」格拉夫說。
Alphabet 的五年期票價僅高於 6 月份亞馬遜網站發行的 0.40% 三年票據，是有史以來最低的企業優惠券之一。然而，Alphabet 的 0.45％ 五年期比亞馬遜的 2020 年 6 月產品便宜，其成熟期價格為 0.80％。
在提供的 100 億美元中，七期、二十年期和 40 年期的 45 億美元將用於一般企業用途，包括收購。該公司表示，剩下的 55 億美元將用於綠色倡議，這是有史以來最大的企業債務發行，用於環境，社會和治理工作。
（凱特·杜格德在紐約的報導; 大衛編輯
格雷戈里奧)
(kate.duguid@thomsonreuters.com; 路透社;
訊息：kate.duguid@thomsonreuters.com @thomsonreuters 網頁)
譯文內容由第三人軟體翻譯。