Amazon will raise $5.8 billion in first sterling bond sale, lead managers say

LONDON, Sept 9 - Amazon secured £4.25 billion ($5.76 billion) from its inaugural sterling bond issuance on Wednesday, exceeding expectations, according to the deal's lead managers. The transaction, which comprised four segments, saw final demand surpass £10.65 billion, eclipsing the initial £12 billion target as banks adjusted pricing.

This marks the third consecutive year Amazon has ventured into bond markets outside the U.S., with the company issuing over $200 billion in debt this year, more than doubling 2025 figures, per LSEG data. Amazon plans to raise an additional £1.25 billion via a three-year bond, plus £1 billion each from six-, 12-, and 19-year bonds, with yields spanning 5.2-6.7% for the respective issues, as per the lead manager.

The European Central Bank cautioned that hyperscalers' entry into the euro zone bond market could potentially strain borrowers and inflate financing costs. Amazon's lower-than-anticipated demand, roughly 2.5 times the amount initially intended, reflects investor apprehensions about sustained borrowing by tech giants. While Alphabet led the sterling market in February, raising £5.5 billion, investor enthusiasm for Amazon's offering was notably less, though still robust.