Google’s Parent Company Plans to Borrow 2.8 Billion Dollars

Alphabet Inc., the company that owns Google, is trying to borrow 2.8 billion dollars by selling bonds in Europe on Tuesday. This comes just one day after the company borrowed 5 billion dollars in the United States.

The money will be used to pay back old loans and for other business needs. The deal should be completed later today. Alphabet is offering different types of bonds that must be paid back in 4 to 29 years.

Details About the Money Borrowing:

The 4-year bond will cost a little more than normal interest rates. The 29-year bond will cost more than that. If this works, the 29-year bond will be the second longest company bond sold in Europe this year.

Big banks like Goldman Sachs, HSBC, and JPMorgan Chase are helping with this deal.

Why Does Alphabet Need to Borrow Money?

Alphabet actually has 95 billion dollars in cash right now. Over the next three years, it expects to make about 300 billion dollars more. But the company still wants to borrow money now because:

The borrowing market is stable right now after some changes in U.S. trade rules

It’s better to borrow now before things change again

What Will the Money Be Used For?

To pay back older loans (which can save money)

To invest in new projects like buying back company stock or working on artificial intelligence

Alphabet’s U.S. Borrowing:
On Monday, Alphabet borrowed 5 billion dollars in the U.S. This was its first time borrowing money since 2020. Part of this was a special 40-year loan worth 1.5 billion dollars that ended up costing less than expected.

Other big companies like Procter & Gamble (which makes Crest toothpaste) and home builder D.R. Horton also borrowed money this week. In total, 15 companies borrowed more than 18 billion dollars – the most since March.

Alphabet’s Recent Earnings:
Last week, Alphabet shared its money report for early 2025:

Total money made: 90.23 billion dollars (12% more than last year)