Amazon Launches First Sterling Bond Sale as AI Drives Funding Demand
Amazon's Entry into the Sterling Bond Market
LONDON, Sept 8 (Reuters) - Amazon hired banks on Tuesday for its first ever sterling bond sale, according to a memo seen by Reuters, as hyperscalers rush to raise funding across currencies to finance the AI boom.
Details of the Bond Sale
The tech giant is looking to sell 3-year, 6-year, 12-year and 19-year bonds, according to the memo from one of the banks arranging the sale.
Timing and Market Conditions
The transaction may come as early as Wednesday, subject to market conditions, the memo added.
Fundraising Amount
It did not specify how much money Amazon is looking to raise from the bonds.
Context: Hyperscalers and Global Bond Issuance
Hyperscalers like Amazon are increasingly selling bonds across markets outside of the U.S. this year, from euros to Swiss francs and the yen, as they seek to diversify their financing sources given huge funding needs for the AI transition.
Investor Demand and Market Impact
The scale of their debt issuance is already testing the limits of investor demand, particularly in the U.S. dollar bond market, with some large bond buyers warning over the summer that the market is showing signs of indigestion.
Comparisons with Other Tech Giants
Alphabet's Sterling Bond Sale
Amazon's sterling bond sale follows that of Google-parent Alphabet, which raised £5.5 billion ($7.44 billion) from a five-part deal in the currency in February, which included a rare 100-year bond.
Currency Conversion Reference
($1 = 0.7395 pounds)
Reporting Credits
(Reporting by Scott Murdoch, writing by Yoruk Bahceli; editing by Alun John and Amanda Cooper)