Amazon aims to raise €10B via bond sale
What's the story
Amazon has made its debut in the euro bond market, launching a record-breaking eight-part sale. The tech giant aims to raise roughly €10 billion ($11.6 billion) through this deal, which will go toward investments in artificial intelligence (AI). The offering is expected to be one of the largest corporate bond sales ever and comes after Amazon's recent 11-part dollar sale that raised $37 billion.
Strategic approach
Amazon sets new record with 8-part euro bond deal
The eight-part euro bond deal has maturities ranging from two to 38 years. This multi-maturity approach allows Amazon to tap into different investor bases while reducing its refinancing risk. The previous record for the number of tranches in Europe was a seven-part sale by LVMH Moet Hennessy Louis Vuitton SE in 2020 to fund its acquisition of Tiffany & Co.
Investor response
US portion of bond deal sees $126B in orders
The US portion of Amazon's bond deal received about $126 billion in orders, one of the largest ever for a corporate offering. The initial target was raised from $25 billion to $30 billion due to high demand. JPMorgan is leading the charge for this euro debut with €10 billion across eight tranches.
Plans
Amazon's $200B capital expenditure forecast in 2026
The proceeds from this record-breaking bond sale will help Amazon pre-fund a massive $200 billion expenditure in 2026 on data centers, chips, and equipment. This is way above what analysts had anticipated and highlights Amazon's commitment to investing heavily in AI infrastructure. Amazon, together with Alphabet, Meta Platforms, and Microsoft have forecast combined capital expenditures of about $650 billion in 2026.