Amazon Raises £4.25 Billion in Sterling Bond Sale Amid AI Infrastructure Spending
Amazon's shares fell by 1.8% to $252.23 in New York trading after the company raised £4.25 billion ($5.76 billion) in its first sterling bond sale on September 9.
The proceeds from this financing will be used for various purposes, including debt repayment, acquisitions, investments, working capital, and capital spending, according to Amazon's preliminary prospectus filed with the SEC.
The company sold £1.25 billion of three-year notes, £1 billion each of six-, 12- and 19-year debt, at yields ranging from 5.2% to 6.7%. Final investor orders exceeded £10.65 billion, more than tripling the initially expected amount.
The sale widens Amazon's investor base and adds long-dated, non-dilutive capital, which is crucial for financing its data centers and computing infrastructure, particularly in AI development.