AI Funding Boom Reaches Muni Market With Google-Tied Deal

Financial Post

Google parent Alphabet Inc. is poised to enter the municipal-bond market’s prepaid energy space by participating in a $1 billion transaction out of California, a major development in the evolution of a booming segment.

Alphabet was identified as the funding recipient on a $1 billion transaction slated to be issued by the California Community Choice Financing Authority, according to preliminary bond documents posted late Tuesday. Goldman Sachs Group Inc., one of the leading underwriters of prepaid deals, is arranging the California offering. Alphabet’s entry into the prepaid sector as a funding recipient would make it the first US tech company known to play such a role on a deal.

The planned bond issuance would finance the acquisition of a long-term supply of electricity at a discounted price for Pioneer Community Energy, an electricity provider based in Rocklin, California. In the roadshow for investors, Pioneer adopted Google’s iconic color palette for its name.

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