Amazon Surpasses Expectations with £4.25 Billion Sterling Bond Sale

Amazon is set to raise over $5.76 billion in its first-ever sterling bond sale, more than initially expected. The deal saw strong demand, with Amazon receiving £12 billion worth of bids for the four-part offering.

The company will issue bonds with varying maturity periods: £1.25 billion from 3-year bonds and £1 billion each from 6-, 12- and 19-year bonds. These bonds will offer spreads of 53, 75, 90, and 93 basis points over corresponding British government bonds, respectively.

This is Amazon's first bond sale since July, when it received weaker demand than in the past for a $25-billion offering. The company has been actively expanding its funding programme to include new currencies, such as the pound, which joins the euro, Swiss franc, and Canadian dollar markets.

The sterling market is just the latest example of hyperscalers' increasing reliance on bond sales across various global markets to finance their growth and investment in artificial intelligence. This trend has seen more than $200 billion worth of debt issued by hyperscalers this year alone, according to LSEG data.