Amazon raises almost $6 billion in first sterling bond sale, lead manager says

Amazon raised nearly £4.25 billion ($5.76 billion) from its inaugural sterling bond sale on Wednesday, exceeding preliminary projections, according to a bank managing the deal. This marks the latest instance of tech giants venturing into bond markets outside the U.S. to finance their burgeoning needs, especially as they rush to capitalize on the AI boom. The deal is part of Amazon's wider strategy of issuing over $200 billion in debt this year, more than doubling the amount raised in all of 2025, as reported by LSEG data.

The four-part deal saw final demand of over £10.65 billion, slightly below the £12 billion level observed prior to lead banks adjusting pricing. Amazon will raise £1.25 billion from the three-year bond sale, and £1 billion each from six-, 12- and 19-year bonds, as stated by the lead manager. These bonds offered yields ranging from approximately 5.2% on the three-year issue to 6.7% on the 19-year offering, according to the lead manager.

Amazon's bond issuance extends its funding efforts to the sterling currency, following previous dealings in the euro, Swiss franc, and Canadian dollar markets. The European Central Bank cautioned in early September that hyperscalers' intrusion into the euro zone bond market might displace other borrowers and heighten their financing expenses.

Google-owner Alphabet was the first hyperscaler to tap the sterling market in February, raising £5.5 billion in a five-part deal, including a rare 100-year bond. Investor interest in the Amazon sale surpassed expectations by about 2.5 times, significantly lower than the fivefold demand seen by Alphabet in February, per LSEG's IFR.

Gordon Shannon, a partner at TwentyFour Asset Management, attributed the reduced demand to investor apprehensions about hyperscalers' sustained borrowing. This indicates that demand for such borrowing is not limitless, he added. The rapid borrowing pace has started to strain investor appetite in recent months, contributing to tighter bond markets with soaring borrowing costs. This marks Amazon's first bond sale since July, which garnered weaker demand than in previous offerings.