Amazon Rises £4.25 Billion in Sterling Bond Sale Amidst Hyperscaler Financing Surge

Amazon has raised £4.25 billion ($5.76 billion) in its first-ever sterling bond sale, exceeding initial expectations and demonstrating the company's need for diverse funding sources to finance the AI boom.

The sale is part of a trend where hyperscalers are increasingly selling bonds across markets outside of the US, including euros, Swiss francs, and yen. Amazon has already issued more than $200 billion in debt this year, more than doubling from 2025, according to LSEG data.

Amazon saw final demand of more than £10.65 billion for the four-part deal, which was slightly lower than around £12 billion it saw before lead banks tightened pricing. The bonds will raise £1.25 billion over three years and £1 billion each over six, 12, and 19 years, priced with yields ranging from 5.2% to 6.7%. This is Amazon's first bond sale since July, which received weaker demand than in the past.

Gordon Shannon, partner at TwentyFour Asset Management, said investor concerns around sustained borrowing by hyperscalers may be testing the limits of investor demand and adding pressure on broader bond markets.