Business & Finance
Goldman Brings Google to Prepaid Energy Market After Equity Deal
Key Points
Goldman Brings Google to Prepaid Energy Market After Equity Deal On the heels of arranging a record $85 billion equity-raise for Alphabet Inc., Goldman Sachs Group Inc. has scored a lesser-known victory for the tech giant in the municipal bond market. The muni market is best known for borrowings by US states and cities, but a structure known as prepaid energy bonds is allowing companies like Google parent Alphabet and Realty Income Corp., a massive real estate investment trust, to raise...
Goldman Brings Google to Prepaid Energy Market After Equity Deal
On the heels of arranging a record $85 billion equity-raise for Alphabet Inc., Goldman Sachs Group Inc. has scored a lesser-known victory for the tech giant in the municipal bond market.
The muni market is best known for borrowings by US states and cities, but a structure known as prepaid energy bonds is allowing companies like Google parent Alphabet and Realty Income Corp., a massive real estate investment trust, to raise financing. As part of the financial engineering of such deals, utilities lock in cheaper natural gas or electricity for decades, while companies like Alphabet that participate in the transaction as financial intermediaries access cheaper funding and a new investor base.