Amazon to Raise Over US$ 5 Billion in First UK Bond Issuance

Amazon is expected to raise approximately 4 billion pounds, which is between US$ 5.43 billion and US$ 5.8 billion, through its first issuance of bonds in pounds sterling on Wednesday. According to a bank involved in the deal, the operation attracted strong demand that exceeded 12 billion pounds. The issuance will be divided into four tranches of 1 billion pounds each, with maturities set for 3, 6, 12, and 19 years.

This move is part of a broader trend where hyperscale technology companies are diversifying their funding sources to support increasing investments in artificial intelligence. These companies have increasingly turned to debt markets outside the United States, raising funds in euros, Swiss francs, Japanese yen, and Canadian dollars. Data from LSEG indicates that hyperscalers have issued more than US$ 200 billion in debt in 2026, which is more than double the volume from the previous year.

Alphabet, the parent company of Google, previously entered the sterling market in February with a 5.5 billion pound issuance. While demand for this current Amazon offering is high, a previous US$ 25 billion offering in July saw lower demand than in prior years, suggesting that the high volume of tech giant borrowing may be testing investor appetite. Additionally, the European Central Bank warned in September that the entry of hyperscalers into the euro zone bond market could displace other issuers and increase their financing costs.