AI Funding Boom Reaches Muni Market With Google-Tied Deal (2)

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.

Prepaid energy deals are complicated transactions that allow utilities to lock in cheaper prices for gas and ...