Amazon Plans $12B US Bond Sale After Three-Year Gap
Amazon prepares a $12B U.S. bond sale, its first since 2021, as the company raises long-term funds for data centers, chip supply and cloud expansion.
Amazon.com Inc. is preparing a U.S. dollar bond sale of about $12 billion, according to people familiar with the transaction. It would be the company’s first offering in the U.S. market since 2021.
The issue is expected to include several maturities. One of them is a 40-year note that early discussions place at roughly 115 basis points over Treasuries, the people said. Terms may change as books build.
Goldman Sachs, JPMorgan and Morgan Stanley are leading the sale. People briefed on the matter said Amazon has left the use of proceeds broad, covering possible acquisitions, investment needs and routine corporate purposes.
Large U.S. technology companies have been active in debt markets in recent weeks. Alphabet issued $25 billion earlier this month. Meta sold $30 billion in September, while Oracle raised $18 billion around the same time. Their deals have helped push global corporate issuance to record levels this year.
Banks expect more transactions as major tech companies continue to put money into data centers and hardware tied to artificial-intelligence services. JPMorgan has projected that U.S. investment-grade supply could touch $1.81 trillion next year.
Amazon’s own spending has increased sharply. People familiar with its capital program say the company has been adding new data-center sites, arranging long-term chip supply, and securing additional power capacity. These projects contributed to $34.2 billion in capital expenditures in the third quarter, up from a year earlier.
The company has been expanding its computing footprint since 2022. Chief Executive Andy Jassy recently said Amazon expects another significant increase by 2027 as new sites come online.
Amazon Web Services also signed a seven-year arrangement this month valued at about $38 billion to provide OpenAI with access to Nvidia processors. The agreement gives OpenAI reserved compute capacity during a period of tight chip availability.
People with knowledge of the bond sale said Amazon is moving now to lock in long-dated funding while conditions in the high-grade market remain stable. Final pricing is expected once investor orders are confirmed.
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