Alphabet has raised over $11 billion through global bond sales, including a rare 100-year bond, as it ramps up spending on artificial intelligence and long-term technology investments
Alphabet Inc, the parent company of Google, is in the middle of one of the largest bond sales by a technology company in recent years, Bloomberg reported. The company is raising more than $11 billion through sterling- and Swiss franc-denominated bonds, including a rare 100-year bond, also known as a “century bond”.
The move comes just days after Alphabet raised $20 billion in a multi-part US dollar bond sale that drew some of the strongest demand ever seen for a corporate offering.
What are 100-year bonds?
A 100-year bond is a debt instrument that matures in 100 years. This means the issuer — usually a government or company — promises to pay interest regularly and repay the principal amount after a century.
Such bonds are extremely rare in the corporate world. According to Bloomberg data, Alphabet’s 100-year note is the first such sale by a technology firm since Motorola issued one in 1997.
The market for century bonds is largely dominated by governments and institutions such as universities. For companies, long maturities carry added uncertainty because businesses can change dramatically over decades.
Why are 100-year bonds issued?
Governments and companies issue 100-year bonds to take advantage of favourable market conditions, especially when interest rates are low. By locking in borrowing costs for a century, issuers can spread repayment obligations over a very long period.
Institutional investors such as pension funds and insurance companies often buy such bonds to match long-term liabilities. For example, pension funds must make payouts over decades, so long-dated bonds help align assets with future obligations.
In some cases, century bonds are also used for estate planning, allowing wealth to be structured across generations.
Why do companies issue them now?
Alphabet’s current borrowing spree comes after it said capital expenditure could reach as much as $185 billion this year — double last year’s spending — largely to fund AI ambitions.
Other technology firms have also announced heavy spending plans for 2026. Morgan Stanley expects borrowing by large cloud computing companies, known as hyperscalers, to hit $400 billion this year, up from $165 billion in 2025.
Alphabet’s offering is expected to total £5.5 billion ($7.5 billion), a record for the UK market. It includes maturities ranging from three to 32 years, along with the 100-year bond. The company reportedly attracted a record £30 billion in bids, the news report said.
The Swiss franc deal will be at least 2.75 billion francs ($3.6 billion) across multiple maturities. Both offerings follow the $20 billion US dollar bond sale completed earlier this week.
Strong demand has been evident. A £1 billion tranche reportedly drew £9.5 billion in orders and is set to price at 120 basis points over UK government bonds (gilts). The shortest £750 million tranche is priced at 45 basis points over the benchmark.
However, analysts warn that such large borrowing requirements could put pressure on bond valuations over time.
Alphabet has also raised €6.5 billion in the euro bond market as recently as November, making it one of the largest borrowers in Europe in 2025.
Which Indian companies have issued 100-year bonds?
No Indian company has issued a true 100-year domestic bond in recent years. However, Reliance Industries raised a $100 million 100-year external commercial borrowing in 1997. The issue was oversubscribed up to $250 million and priced at 380 basis points over US Treasury rates.
Life Insurance Corporation of India (LIC) has sought Reserve Bank of India approval to issue 50- and 100-year bonds to match long-term insurance liabilities. While it has received clearance for 40-year bonds, century bonds have not yet been issued.
What are the risks involved?
Century bonds carry significant risks, especially for investors.
• Interest rate risk: If interest rates rise, the value of long-term bonds can fall sharply. Over 100 years, the likelihood of major rate cycles is high.
• Credit risk: Investors face the possibility that the issuer may default decades down the line.
• Call risk: Many such bonds are callable, meaning the issuer can repay them early. This can limit investor gains if interest rates fall.
• Business risk: Corporate models can become outdated due to technological changes or acquisitions.
IBM issued a 100-year bond in 1996 when it dominated the tech industry, but competition from Microsoft and Apple soon eroded its position. Retailer JC Penney sold $500 million in century bonds in 1997; those bonds later traded at deep discounts after the company filed for bankruptcy 23 years later, CNN reported.
What kind of returns do investors expect?
Investors typically receive a fixed interest payment over the life of the bond. Because of the long maturity, yields are usually higher than shorter-term government bonds, offering a premium for locking in capital.
However, returns depend heavily on interest rate movements, inflation trends and the issuer’s long-term financial health.
