Goldman Brings Alphabet to Prepaid Energy Bonds After $85 Billion Equity Deal
Updated
Updated · Bloomberg · Jun 15
Goldman Brings Alphabet to Prepaid Energy Bonds After $85 Billion Equity Deal
1 articles · Updated · Bloomberg · Jun 15
Summary
Alphabet has entered the prepaid energy bond market through a Goldman Sachs-arranged structure that lets the company tap cheaper funding beyond traditional corporate debt channels.
Prepaid energy bonds work by having utilities lock in natural gas or electricity supplies for decades, while corporate intermediaries such as Alphabet gain lower-cost financing and access to municipal-bond investors.
Goldman’s latest win follows its role in Alphabet’s record $85 billion equity raise, extending the bank’s financing relationship with the Google parent into the municipal market.
The niche market, better known for utility-linked deals than tech financing, is also being used by companies such as Realty Income, showing how muni structures are reaching new corporate borrowers.