Alphabet raised A$5.5 billion ($3.89 billion) in its first Australian dollar debt issuance, selling three-, five-, 10- and 20-year bonds, according to a term sheet seen by Reuters. Orders topped A$18 billion ($12.8 billion), more than three times the amount sold, making Alphabet the first AI hyperscaler to tap the Australian-dollar market and the first U.S. large-cap tech issuer to sell a Kangaroo bond since Apple in 2016. The coupon on the 20-year tranche was set at 6.9%, potentially the highest rate the Google parent has paid on a debt offering. The sale comes as Alphabet expands its use of capital markets to fund heavy AI spending after debt reportedly grew from roughly $16 billion to about $100 billion over 12 months. The company followed the Australian sale with a $25 billion U.S. dollar bond raise earlier this month and an almost $85 billion equity capital raise in June. Alphabet also reported its first-ever negative free cash flow in the second quarter, with operating cash flow of $39.1 billion trailing capital spending of $44.9 billion, even as Google Cloud revenue rose 82% to $24.8 billion and backlog reached $514 billion.