Alphabet is preparing its first Australian dollar bond sale, targeting about A$5 billion, or $3.6 billion.

If completed, the transaction would be the largest corporate debt issue ever sold in Australia, surpassing Apple’s $2.25 billion record from more than a decade ago. Alphabet Inc. (GOOGL) was up 0.70% in pre-market trading on Monday, after closing Friday at $345.90.

Chamath De Silva, head of fixed income at Betashares, called the deal “a historic moment for the Australian corporate bond market.” He said it would be the first time a US large-cap technology company has issued a Kangaroo bond in almost a decade.

The proposed bond sale includes 3-, 5-, 10-, and 20-year maturities. The shorter-dated notes may be issued with either fixed or floating rates, while the 10- and 20-year tranches would be fixed-rate only.

ANZ, Deutsche Bank, RBC Capital Markets, and TD Securities are working on the deal. Initial pricing guidance could arrive as early as Tuesday.

Mark Bayley, a portfolio manager at Kapstream, said: “We’re absolutely interested. It’s probably the equivalent of the SpaceX IPO for the corporate bond market.”

For investors in the Australian debt market, the deal would add another large, investment-grade benchmark from a global technology borrower at a time when funding needs are rising across the sector. For Alphabet, issuing in Australian dollars broadens its financing options beyond its recent U.S. dollar sale and gives the company access to a different pool of institutional demand.

Funding AI at scale

The Australian offering comes after a busy period for Alphabet in the debt markets. Earlier this month, the company raised $25 billion through a dollar bond sale and attracted about $115 billion in investor orders, underscoring strong demand. In June, Alphabet also completed an $8.48 billion equity offering.

Alphabet is spending heavily as it expands its artificial intelligence infrastructure. In Q2 2026, the company increased its full-year capital expenditure plan by $15 billion, with spending now expected to range from $195 billion to $205 billion for the year.

The company also reported negative free cash flow of $5.9 billion in the quarter, marking its first negative quarterly free cash flow as a public company.

Despite the higher spending, Alphabet’s Q2 results exceeded Wall Street expectations. Earnings came in at $9.11 per share, well above the $2.89 consensus estimate, while revenue reached $119.80 billion versus analyst expectations of $117.07 billion.

Institutional activity

Berkshire Hathaway increased its Alphabet position by 83% in Q2, bringing its holding to about 106 million shares valued at $37.9 billion. That makes GOOGL Berkshire’s third-largest U.S.-listed equity holding.

Vanguard and Capital World Investors also added to their Alphabet stakes. Roughly 40% of the stock is held by hedge funds and institutional investors.

Agate Pass Investment Management reduced its stake by 10.9% in Q2, selling 5,336 shares. The firm still owns 43,706 shares worth about $15.6 million, and Alphabet remains its largest single holding.

Zacks Research downgraded GOOGL from “strong buy” to “hold” during the period, citing valuation and spending concerns.

Wall Street’s average price target for the stock is $422.59, based on 25 Buy ratings and 5 Hold ratings from 30 analysts.