Google's global financing landscape makes another move: Following euro-denominated bonds, it plans to issue yen-denominated bonds for the first time to ramp up the AI arms race

Zhitong
2026.05.11 03:38

Google plans to issue yen-denominated bonds for the first time, further expanding its global financing landscape. This move comes against the backdrop of increasing capital expenditures in the AI sector. Google has hired several financial institutions to handle this bond issuance, which is expected to proceed based on market conditions. The issuance of yen bonds will enable Google to cover six major currency markets in just a few months, reflecting its substantial investment plans in AI-related infrastructure

According to the Zhitong Finance APP, as capital expenditures in the field of artificial intelligence (AI) continue to escalate like an "arms race," Google (GOOGL.US) is weaving a vast financing network globally at an astonishing speed and scale. Reports indicate that the tech giant is further expanding its financing landscape worldwide and plans to issue yen-denominated bonds for the first time.

According to insiders, Google has hired Bank of America Securities, Mizuho Securities, and Morgan Stanley to handle this potential issuance of fixed-rate senior unsecured bonds. The transaction is expected to proceed soon, depending on market conditions. This SEC-registered issuance will mark Google's first foray into the yen bond market.

Focusing on the Japanese market is a continuation of Google's recent global intensive financing strategy. Just last week, the company completed the largest euro-denominated bond issuance in history and successfully issued Canadian dollar bonds for the first time, raising a total of approximately $17 billion. This comes just months after it raised about $32 billion in the dollar, pound, and Swiss franc markets in February, which included a rare 100-year pound bond, setting a record for the tech industry in years.

The yen bond plan signifies that within just a few months, Google will achieve comprehensive coverage of the six major currency markets: the dollar, pound, Swiss franc, euro, Canadian dollar, and yen.

The driving force behind this series of borrowing actions is the tech giant's massive capital expenditure guidance. It is reported that the company has raised its capital expenditure expectations for 2026, planning to invest up to $190 billion, an increase from the previous estimate of $185 billion. This figure is already double its capital expenditure for 2025, primarily for infrastructure construction related to AI, such as data centers and custom chips. Against the backdrop of the AI computing power arms race forcing a restructuring of capital, Google, with its S&P AA+ high credit rating, is actively taking advantage of the global low-interest-rate environment to refinance in advance and create a buffer for the new phase of capital expenditures

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