Alphabet launches first HKD and SGD bond issuances, AI-related companies face stricter scrutiny

(1) Alphabet has begun marketing its first Hong Kong dollar and Singapore dollar bond issuance, testing investor interest as AI-related companies face increasingly intense market volatility. According to sources familiar with the matter, the Google parent company has set initial price guidance for its proposed 2-year, 5-year, and 10-year Hong Kong dollar bonds at approximately 4.6%, 5%, and 5.5% respectively; the company is also marketing 2-year, 5-year, 10-year, and 30-year Singapore dollar bonds, with price guidance of approximately 2.75%, 3.25%, 3.65%, and 4% respectively.(2) The proceeds from this issuance will be used for general corporate purposes, which may include repaying existing debt; sources said the bonds could be priced as early as Thursday. This transaction comes at a challenging time for borrowers in the technology industry.(3) Last week, widespread sell-offs occurred as the market worried that a Democrat sweep in the US midterm elections could lead to stricter scrutiny of data center development and AI infrastructure spending. Investors have become more cautious toward AI-related assets; the industry has also been affected by market turmoil triggered by leading AI chip manufacturer Nvidia—Nvidia is working with an external agency to identify a potential successor to CEO Jensen Huang.