Amazon Enters Sterling Bond Market Amid Hyperscaler Debt Surge

Amazon has started selling sterling bonds for the first time, as hyperscalers rush to diversify their funding sources to finance the AI boom.

The deal is part of a trend where hyperscalers are increasingly selling bonds across markets outside of the US this year, with Amazon joining Google-parent Alphabet in tapping the sterling market. According to data from LSEG, hyperscalers have already issued more than $200 billion of debt this year, more than doubling from 2025.

Initial price guidance on the Amazon deal was set at around 70 basis points over British government bonds for a three-year bond, 90 basis points over for a six-year bond, and 105 basis points over for a 12-year bond. The pound is the latest currency Amazon has added to its funding programme after tapping the euro and Swiss franc bond markets.

The European Central Bank warned earlier in September that hyperscalers' push into the euro zone bond market could potentially crowd out other borrowers and push up their financing costs.