Alphabet is set to raise 6 billion euros through a euro bond issuance, paying a higher premium to attract buyers.

Alphabet is set to raise 6 billion through its second euro bond issuance this year. Concerns over the pace of artificial intelligence spending had triggered a selloff in credit markets, pushing yields on this issuance noticeably higher than those of its May sale. According to people familiar with the matter, the Google parent is nearing the completion of a seven-tranche bond deal with maturities ranging from two to 19 years. Investors placed orders exceeding 17.1 billion, with demand concentrated in the longest-dated tranche, the people said. Spreads on all tranches of Alphabet's latest issuance are expected to be wider than those at the time of the May sale. The pricing also reflects declines in the prices of Alphabet's existing euro bonds; spreads on those bonds have widened by as much as 0.6 percentage points since they began trading. Data show that, combined with the 9 billion six-tranche sale in May, this issuance will make Alphabet the largest single-calendar-year euro corporate bond issuer. That record is currently held by Amazon, which raised 14.5 billion in March this year.