Emerging market issuers are diversifying away from dollar funding. We examine which currencies they are looking to raise debt capital with and what is driving them out of the dollar market.
We also dissect the tough choices the Republic of Congo faced this week as it priced its debut Eurobond at an eye-wateringly high yield. We discuss the sustainability of that sort of debt and what the country's funding options are now.
If there is one thing the US big tech firms like to do, it's disrupt. They grew fat on disrupting old ways of social interaction and doing business and now they're at the forefront of the disruption AI will bring. To fund the enormous amounts of capital expenditure that AI infrastructure requires, they're now disrupting the capital markets too.
Alphabet this week priced 17 tranches of bonds in three currencies to raise more than $31bn-equivalent. That's impressive enough but it showed that in the sterling and Swiss franc bond markets that incredible feats were possible — and from an issuer at the centre of what may prove to be a bubble and which does not have a long track record of issuing in any currency.
Among five sterling tranches, which raised £5.5bn, was a 100 year bond. Meanwhile, its Swiss franc sale has surely alerted other issuers to the size of funding available in that market. We discuss it all.
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