【AI + Bonds】Amazon's $40 billion bond response is enthusiastic; reports say they are increasing issuance of European bonds

robot
Abstract generation in progress

To support massive spending on artificial intelligence (AI) research and infrastructure, e-commerce and cloud leader Amazon (AMZN) is launching the largest corporate bond issuance in history. Bloomberg reports, citing sources, that Amazon aims to raise approximately $37 billion to $42 billion (about HKD 288.6 billion to HKD 327.6 billion) through “Transatlantic products” denominated in U.S. dollars and euros.

The report states that Amazon’s bond issuance will be divided into 11 parts, raising $25 billion to $30 billion, with maturities ranging from 2 to 50 years. Among them, a 50-year bond maturing in 2076 is preliminarily priced at a spread of 1.55 percentage points above U.S. Treasury yields.

Additionally, one day after the news broke, European investors showed strong interest in subscribing. Bloomberg reports that Amazon plans to raise funds through its first issuance of euro bonds in eight tranches, increasing the total from the initially reported $10 billion to $12.5 billion, setting a record for corporate bond issuance in the region. The bonds will have maturities ranging from 2 to 38 years.

The report indicates that the issuance of Amazon’s U.S. dollar bonds is managed by several top international investment banks, including Goldman Sachs, JPMorgan Chase, Citigroup, and HSBC.

Currently, these banks have declined to comment or have not responded immediately. On Tuesday (the 10th), Amazon filed documents with the U.S. Securities and Exchange Commission (SEC), but specific amounts have not yet been disclosed.

View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • Comment
  • Repost
  • Share
Comment
0/400
No comments
  • Pin