Amazon has raised $37 billion USD through a massive US bond sale as hyperscale technology companies ramp up spending on Artificial Intelligence (AI) infrastructure.
It is reported to be one of the largest corporate debt raisings on record that could grow to nearly $50 million USD once a planned euro-denominated offering is completed.
According to reporting by Bloomberg, the transaction represents the fourth-largest US corporate bond sale ever and the biggest not linked to an acquisition. Initial guidance for the offering was between $25 billion USD and $30 billion USD before investor demand pushed the final US total significantly higher.
The company issued high-grade debt across 11 tranches ranging from two-year to 50-year maturities. The longest portion, a note maturing in 2076, ultimately priced about 1.3 percentage points above US Treasuries after tightening during the marketing process, according to people familiar with the deal.
Investor demand was substantial, with roughly $126 billion USD of orders placed for the US offering alone.
Amazon is also preparing to enter the European debt market with a planned eight-part euro bond offering expected to raise at least €10 billion (approx. $11.6 billion USD). If completed, the European issue would represent the largest number of tranches ever sold by a single company in the region.
Major banks involved in the euro offering include JPMorgan Chase & Co., Barclays Plc, Bank of America Corp. and Société Générale SA, according to sources cited by Bloomberg. Amazon declined to comment publicly and referred to a March 10 filing with the US Securities and Exchange Commission.
The debt raising reflects the enormous capital requirements tied to the global expansion of AI infrastructure.
Amazon recently revealed plans to invest about $200 billion USD in data centres, semiconductor technology and other equipment in 2026 alone – well above analyst expectations.
Across the hyperscale technology sector, capital expenditure is expected to reach around $650 billion USD in 2026, according to Bloomberg estimates covering companies including Alphabet Inc., Meta Platforms Inc., Oracle Corp. and Microsoft Corp.
By comparison, Bloomberg estimates that 21 major US industrial companies, including automakers, Exxon Mobil Corp. and Walmart Inc., will collectively invest about $180 billion USD over the same period.
Alphabet raised approximately $32 billion USD in the US and European bond markets last month, while Oracle priced a $25 billion USD bond sale, highlighting the scale of financing required to build next-generation computing infrastructure.
“Hyperscalers need to tap every investor base across tenors and currencies it can to finance the immense amount of spending planned for this year and going forward,” said Zachary Griffiths, head of investment-grade and macro strategy at CreditSights, in comments reported by Bloomberg.
The offering comes during a period of heightened market volatility linked to geopolitical tensions and shifting global trade policy.
Bond issuance had slowed earlier in March as markets reacted to conflict in the Middle East, although activity resumed after indications that tensions between the United States and Iran may ease.
“Elevated volatility is slamming the issuance window shut, and with potentially record one-day supply, dealers are hypersensitive to every tick in broader risk,” said Mark Clegg, senior fixed-income trader at Allspring Global Investments, according to Bloomberg.
Even so, Amazon’s strong credit profile meant investors were willing to absorb the large offering.
Slawomir Soroczynski, Head of Fixed Income at Crown Agents Investment Management, told Bloomberg that the deal should not necessarily be viewed as a barometer of broader credit demand given the company’s financial strength.
Robert Tipp, Chief Investment Strategist and head of global bonds at PGIM Fixed Income, said corporate bonds from profitable companies can appeal to investors seeking alternatives to government securities.
“We’re in an environment of heavy issuance and a secular decline in credit quality of government securities,” said Tipp. “Companies have a more clearly enunciated interest in maintaining their credit quality than do governments.”
Beyond its technology ambitions, Amazon remains one of the largest logistics operators in the world.
For the transport and supply chain sector, the massive capital injection into data centres, computing power and automation highlights the scale at which digital infrastructure is becoming intertwined with modern logistics networks.
In other news, the Victorian Transport Association has welcomed action to stop petrol price gouging.
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