Amazon.com Inc. launched a significant bond sale, raising $37 billion from its US dollar offering. With a planned euro sale, the total fundraising could reach nearly $50 billion. This makes it the fourth-largest US corporate bond sale on record and the largest not associated with an acquisition. Originally, the offering was guided between $25 billion and $30 billion but was increased due to high demand.
The US portion of the bond sale attracted approximately $126 billion in peak demand, indicating strong investor interest. This robust demand highlights continued appetite for debt from hyperscale companies, even amidst market uncertainties stemming from geopolitical events and their potential impact on the US economy. Amazon's offering included 11 tranches of US high-grade debt with maturities ranging from two to 50 years. Pricing for the longest tranche, maturing in 2076, saw a tightening of 0.25 percentage points to 1.3 percentage points above Treasuries.
The funds raised are earmarked for Amazon's substantial investments in AI infrastructure. The company, alongside other tech giants like Alphabet, Meta Platforms Inc., Oracle, and Microsoft Corp., is forecasting around $650 billion in capital expenditures for 2026. This contrasts sharply with the projected $180 billion combined spending of 21 other major US companies, including automakers and retailers. Amazon's latest offering follows its $15 billion US debt sale in November, and this new fundraising initiative signals its increased reliance on debt to finance its ambitious AI projects.
