Amazon Surpasses Expectations with Record-Breaking Sterling Bond Sale

Amazon has successfully raised £4.25 billion ($5.76 billion) in its first-ever sterling bond sale, exceeding initial expectations. The deal saw strong demand, with over £12 billion worth of interest from investors.

The four-part deal includes bonds with varying maturities: 3-year, 6-year, 12-year, and 19-year bonds, which will be priced to offer spreads of 53 basis points, 75 basis points, 90 basis points, and 93 basis points over corresponding British government bonds.

This is Amazon's first bond sale since July, when it received weaker demand for a $25-billion offering. The company has been actively diversifying its funding sources to finance the AI boom, with hyperscalers rushing to tap markets outside of the US.

Amazon joins Google-parent Alphabet in tapping the sterling market, which was pioneered by Alphabet in February when it raised £5.5 billion from a five-part deal, including a rare 100-year bond.