Alphabet eyes Japanese yen bond sale, book runner's message shows

TOKYO, May 11 (Reuters) - Alphabet, the parent company of Google, is considering selling Japanese yen bonds, according to a bookrunner's message seen by Reuters.

A deal could consist of a senior unsecured bond and would be subject to market conditions, the message said. It did not mention a potential deal size.

The world's largest technology companies are increasingly tapping debt markets to fund costly artificial intelligence ambitions, marking a shift from Silicon Valley's traditional reliance on cash for investments.

Big Tech is now expected to spend more than $700 billion on AI infrastructure this year, a sharp increase from $410 billion in 2025.

Alphabet has mandated Mizuho, Bank of America (BAC) and Morgan Stanley (MS) to work on the potential transaction, the message said.

A sale would mark Alphabet's first yen bond issue, according to LSEG data.

Alphabet and Morgan Stanley (MS) did not immediately respond to a request for comment from Reuters. Bank of America (BAC) and Mizuho declined to comment.

Alphabet last week raised almost $17 billion through two bond sales - a 9 billion euro ($10.6 billion) issue and a C$8.5 billion ($6.2 billion) issue, according to the company's filings.

Alphabet raised its annual capital spending forecast in late April by $5 ?billion to between $180 billion and $190 billion, and said it was planning another significant increase in 2027. ($1 = 1.3689 Canadian dollars) ($1 = 0.8508 euros) (Reporting by Miho Uranaka in Tokyo; Writing by Scott Murdoch; Editing by Edwina Gibbs)