National Post (National Edition)
ALPHABET LOOKS TO BUTTRESS BLACK COMMUNITY
Alphabet Inc. is proposing to tap the bond market at rock bottom yields, in a rare debt sale that will help combat racial inequality, among other sustainability projects. The parent company of Google is looking to fund organizations that support Black entrepreneurs, small and medium businesses impacted by COVID-19, as well as affordable housing, among other eligible proceeds listed in bond documents. The borrowings can also be used to finance clean energy projects and green buildings. Alphabet has only borrowed in the U.S. investment-grade market a handful of times, with the last issue four years ago. It was cheap to sell bonds then, and could be even more of a steal now — the company may pay just 40 basis points over Treasuries to borrow for five years, according to a source. Google has prioritized supporting the Black community, recently announcing a US$175-million “economic opportunity package” to invest in Black-led venture capital firms and startups, training for Black job seekers and grants for small businesses.