Tech giant Amazon Joining the ranks of bond issuers, it issued dollar bonds for the first time in three years.
On November 17th local time, according to foreign media reports, Amazon launched its first dollar bond issuance in three years, raising $15 billion, $3 billion more than initially expected. The bonds issued by Amazon were rated "investment grade" and were divided into six tranches with maturities ranging from 3 to 40 years. The yield on the longest tranche was 0.85 percentage points higher than the yield on U.S. Treasury bonds of the same maturity.
According to sources familiar with the matter, Amazon plans to use the funds for various purposes, including mergers and acquisitions, capital expenditures, and stock buybacks. At its peak, the bond issuance attracted approximately $80 billion in demand. However, as borrowing costs decreased during the issuance process, the final order size was reduced by half.
Goldman Sachs JPMorgan Chase and Morgan Stanley The company is responsible for this bond issuance. Amazon last entered the U.S. investment-grade bond market in November 2022, when it raised $8.25 billion.
This means that Amazon has joined the latest wave of borrowing frenzy among US tech giants. On the 17th, Amazon (Nasdaq: AMZN) shares fell 0.78% to close at $232.87 per share, with a total market capitalization of $2.49 trillion.
Just recently, Google's parent company, Alphabet, issued approximately $17.5 billion in bonds in the US market and six tranches of euro-denominated benchmark bonds in the European market, totaling approximately $7.5 billion.
In October of this year, Meta launched a record-breaking $30 billion bond issuance, issuing six tranches of bonds with maturities ranging from 5 to 40 years, led by Citigroup. Led by Morgan Stanley , Oracle ... In September of this year... Oracle also raised $18 billion by issuing high-grade bonds.
Based on this calculation, Amazon, Google, Meta, and Oracle have raised $88 billion through bond issuance within three months.
In recent years, technology companies have been borrowing heavily to meet AI ( artificial intelligence) needs. Driven by related demand, global bond issuance has exceeded $6 trillion this year, setting a new record. According to JPMorgan Chase 's forecast, as AI investment continues to grow, the size of US investment-grade bonds will reach $1.81 trillion next year.
Analysts point out that in the still fierce AI race, tech giants dare not show any signs of falling behind. Youssef Squali, an analyst at US investment firm Truist Securities, stated, "All participants are afraid of missing out, because the company that wins the AGI (Artificial General Intelligence ) race will gain a huge advantage. The side that invests less is more likely to fall behind its competitors."
Since 2022, Amazon data centers The company's power capacity has already doubled. Previously, CEO Andy Jassy stated that he expects the company's power capacity to double again by 2027.
Amazon's Q3 2025 financial report shows that the company's revenue increased by 13% year-over-year to $180.2 billion, and net profit surged by 39% to $21.2 billion. Regarding capital expenditures, Amazon's capital expenditures in the first nine months of this year have already approached $90 billion, and are projected to reach $125 billion for the full year. The company's capital expenditures are expected to continue to grow in 2026.
In November of this year, OpenAI and Amazon Web Services (AWS) announced a multi-year strategic partnership agreement worth $38 billion. Over the next seven years, the two companies will continue to deepen their collaboration, with OpenAI receiving access to hundreds of thousands of NVIDIA chips. Amazon's cloud computing resources consist of GPUs and have the ability to scale to tens of millions of CPUs.
In a research report released last week, JPMorgan Chase wrote that now is a "good time" for Amazon to issue bonds: Previously, Amazon mainly relied on its own cash flow for investment, but by incorporating debt into its capital structure, it can improve the company's financing flexibility.
(Source: The Paper)
