Alphabet’s Record Canadian Debt Deal Weighs on Bond Spreads

Alphabet Inc.’s C$8.5 billion ($6.24 billion) bond deal is driving corporate and provincial spreads wider in Canada as investors’ enthusiasm for the hyperscaler’s debt tests the market’s ability to absorb it.

The Google parent sold the debt in four-parts of loonie-denominated bonds maturing from five to 30 years. It’s Alphabet’s first loonie-denominated debt deal and the biggest Canadian bond market offering on record. Order books had grown to around C$19 billion to C$20 billion by mid-morning, according to people familiar with the matter, who asked not to be identified discussing private matters.