Alphabet sets opening guidance for first Singapore and Hong Kong dollar bonds
The proposed sales would likely raise at least US$2.2 billion, a person familiar with the plans told Reuters.
Alphabet, Google's parent company, has indicated starting rates for its first bonds denominated in Singapore and Hong Kong dollars, a term sheet reviewed by Reuters on Nov 12 showed. The Singapore dollar offering includes four maturities, while the Hong Kong dollar offering has three.
- Singapore dollar guidance: 2.75 per cent for notes maturing in 2028; 3.25 per cent for 2031; 3.65 per cent for 2036; and 4 per cent for 2056.
- Hong Kong dollar guidance: 4.6 per cent for notes maturing in 2028; 5 per cent for 2031; and 5.5 per cent for 2036.
Reuters had previously reported the planned offerings, citing two people familiar with the matter. One said Alphabet was considering a minimum of HK$8 billion for the Hong Kong dollar issue and S$1.5 billion for the Singapore dollar issue.
HSBC and JPMorgan are coordinating both offerings globally. Bank of China (Hong Kong), ICBC and Standard Chartered are arranging the Hong Kong dollar issue, while DBS, OCBC and United Overseas Bank are handling the Singapore dollar issue.
Settlement is scheduled for Nov 19. The bonds are expected to receive ratings of Aa2 from Moody’s and AA+ from S&P.
