Amazon.com (AMZN.US) has raised $37 billion through a dollar-denominated bond offering. Combined with a planned euro bond issuance, the total amount raised could approach $50 billion. This unprecedented financing activity ranks as the fourth-largest corporate bond sale in U.S. history and the largest ever not associated with an acquisition. The size of the offering was increased from an initial expectation of $25 billion to $30 billion.
In the United States, Amazon sold investment-grade bonds across 11 tranches with maturities ranging from 2 to 50 years. According to a source familiar with the matter, the longest-dated bonds, maturing in 2076, will yield 1.3 percentage points above U.S. Treasuries. The U.S. portion of the deal attracted approximately $126 billion in orders, one of the largest order books in the history of corporate issuance.
Amazon also plans to enter the European market, targeting at least €10 billion (approximately $11.6 billion) through an eight-tranche bond sale with maturities from 2 to 38 years, which could be launched as early as Wednesday. This would be the highest number of tranches for a corporate bond issuance in the region. Banks including JPMorgan Chase, Barclays, Bank of America, and Société Générale are involved in the euro transaction. The banks underwriting Amazon's bond offering include Goldman Sachs, JPMorgan Chase, Citigroup, and HSBC Holdings, though representatives from these banks declined to comment. Amazon referred to transaction documents filed with the SEC on Tuesday.
Global bond issuance resumed after President Trump hinted at a de-escalation of conflict with Iran. On Tuesday, European bond pricing volume reached about €26.9 billion, the highest level in over a week since Middle East tensions began. The global debt capital market had slowed significantly in early March.
"Market volatility has increased, forcing issuance windows to close, and single-day supply could hit record highs. Traders are exceptionally sensitive to every shift in overall risk. Market dynamics that once played out over weeks are now changing by the hour," said Mark Clegg, Senior Fixed Income Trader at Allspring Global Investments.
Slawomir Soroczynski, Head of Fixed Income at Crown Agents Investment Management, noted that Amazon's strong credit profile means its debt sale cannot be seen as representative of broader credit market demand, as geopolitical uncertainty remains a primary market influence. The opportunity to buy bonds linked to a highly profitable technology and logistics giant offers investors an alternative to U.S. Treasuries, which remain vulnerable to risks like inflation and America's growing fiscal deficits.
"We are in an environment of massive government bond issuance and long-term deterioration in credit quality. However, corporations are currently showing a clearer commitment to maintaining their credit quality than governments. When yields rise across the board, this is another reason investors are willing to sell government bonds and switch to corporate debt," said Robert Tipp, Chief Investment Strategist and Head of Global Bonds at PGIM Fixed Income.
The multi-currency nature of the bond may also provide some hedge against dollar volatility, which has been a persistent concern as the U.S. attempts to reshape its trade policy through tariffs. However, the conflict involving Iran has added further uncertainty to financial markets, with volatility currently high across asset classes. The risk of elevated oil prices could dampen investor sentiment, while traders continuously assess the impact of advancements in artificial intelligence on software publishers.
Amazon's transaction is the latest in a series of large bond issuance plans by hyperscale data center operators, who are planning to invest hundreds of billions of dollars in AI infrastructure. Last month, Alphabet (GOOGL.US) raised approximately $32 billion in the U.S. and European investment-grade bond markets, while Oracle (ORCL.US) issued $25 billion in dollar-denominated bonds.
"Looking ahead, we expect this trend to continue due to the massive demand from hyperscale data centers," wrote TD Securities credit strategist Hans Mikkelsen in a report on Tuesday.
Amazon's last U.S. bond issuance was in November of last year, when it borrowed $15 billion. Issuing 19 different notes in two currencies "embodies the philosophy that these hyperscale companies need to tap into investor bases across all maturities and currencies as much as possible to fund the massive planned expenditures for this year and beyond," said Zachary Griffiths, Head of Investment Grade and Macro Strategy at CreditSights.
Amazon's latest move comes as equity investors grow increasingly concerned that the company's massive investments in artificial intelligence may not yield returns. The company announced last month that it plans to invest approximately $200 billion in data centers, chips, and other equipment by 2026, exceeding analyst expectations. Together with Alphabet, Meta Platforms, Oracle, and Microsoft, the companies are forecasting capital expenditures of around $650 billion by 2026. In contrast, compiled estimates from February showed that 21 companies, including America's largest automakers, ExxonMobil, and Walmart, are expected to spend a combined $180 billion.
Amazon's sale was one of 11 transactions in the U.S. investment-grade bond market on Tuesday. "We expect borrowers with financing needs to continue watching the market closely and seek to capitalize on periods of relative stability, especially given the favorable credit environment and persistently strong demand for high-quality assets," said Kyle Stegemeyer, Head of U.S. Investment Grade Debt Capital Markets and Syndicate at Bank of America.
Data indicates that investor orders were approximately 4.1 times the size of U.S. investment-grade bond deals so far this year.