Amazon launches first sterling bond sale for AI funding
Amazon has completed its first £4.25bn sterling bond sale to fund AI infrastructure, achieving a 2.5x oversubscription as the company’s free cash flow turns negative amid record capital spending. This deal contributes to a record year of hyperscaler debt issuance, with European regulators now monitoring the potential impact on corporate funding costs.
New details from GN auto markets/bonds: debt markets reveal that initial orders for the Amazon issuance approached £12bn before pricing tightened, resulting in a final book of over £10.65bn that covered the deal approximately 2.5 times. The report also highlights that Amazon’s free cash flow has swung to a $7.6bn outflow due to a $66.1bn increase in net capital expenditure, underscoring the scale of the funding gap being bridged by this debt.
Source: GN auto markets/bonds: debt marketsPer GN auto markets/bonds: debt markets, Amazon secured £4.25 billion in its debut sterling bond sale, with total orders peaking at roughly £12 billion before banks tightened spreads to close the books. The offering, managed by JPMorgan, Barclays, HSBC, and NatWest, saw yields range from 5.2% on three-year notes to 6.7% on 19-year issues, marking a 2.5x demand multiple that lags behind Alphabet’s recent fivefold subscription.
Source: GN auto markets/bonds: debt marketsAmazon initiates its first-ever sterling bond issuance to finance artificial intelligence infrastructure, joining a wave of tech giants accessing UK debt markets.
Source: GN auto markets/bonds: bond market
