Amazon Seeks £4.25 Billion in First Sterling Bond Sale
Amazon has raised £4.25 billion ($5.76 billion) in its first-ever sterling bond sale, exceeding initial expectations and demonstrating the company's growing need for diversified funding sources.
The deal is part of a broader trend among hyperscalers to tap into international markets, including euros, Swiss francs, and yen, with over $200 billion issued this year alone. The four-part deal saw final demand of more than £10.65 billion, slightly lower than the £12 billion seen before lead banks tightened pricing.
Amazon will raise £1.25 billion from a three-year bond sale, £1 billion each from six-, 12- and 19-year bonds, with yields ranging from around 5.2% on the three-year to 6.7% on the 19-year issue. The deal is Amazon's first bond sale since July, which received weaker demand than in the past.
Gordon Shannon, partner at TwentyFour Asset Management, noted that lower demand compared to Alphabet's £5.5 billion five-part deal in February reflected investor concerns around sustained borrowing by hyperscalers. He added, 'It does show that demand is not unlimited.'