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(Bloomberg) — Amazon.com Inc. is making its debut in the euro bond market with a record eight-part sale, aiming to raise around €10 billion ($11.6 billion) as Big Tech firms pour money into artificial intelligence infrastructure.
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The deal has maturities ranging from two to 38 years, according to people familiar with the matter, who asked not to be identified. It’s the first ever eight-part sale in the region, according to data compiled by Bloomberg, and follows Amazon’s 11-part dollar sale on Tuesday, which raised $37 billion.
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The combined offering is set to be one of the biggest corporate bond sales ever and is the latest in a series of jumbo deals by cloud-computing companies as they invest heavily in AI. Amazon — along with Alphabet Inc., Meta Platforms Inc. and Microsoft Corp. — have forecast capital expenditures of about $650 billion in 2026.
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Utilizing two currencies and a range of tenors for the deal means that Amazon can tap into various investor bases and spread out its refinancing risk. The previous record for the number of tranches in Europe was a seven-part sale by LVMH Moët Hennessy Louis Vuitton SE in 2020 to finance its acquisition of Tiffany & Co.
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“Amazon is a household name, but investors might ask why are they issuing so much, given historically they are cash rich,” said Saida Eggerstedt, head of sustainable credit at Schroders Investment Management. “We expect the euro bonds will price wider than the dollar bonds after hedges in the longer tranches.”
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The US portion of the deal drew about $126 billion of orders, one of the largest books ever for a corporate offering, according to people with direct knowledge of the matter. The offering was increased from an initial size range of between $25 billion to $30 billion.
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Credit Risk Gauges
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Bond sales restarted at a brisk pace globally on Tuesday after being stifled by surging credit risk in the wake of the conflict in the Middle East. Credit risk gauges pulled back after comments from US President Donald Trump sparked optimism that the war with Iran will end soon. The risk-on mood was tempered on Wednesday as oil prices jumped again and after JPMorgan Chase & Co. was said to be restricting some lending to private credit funds.
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“A lot of the moves we have seen have been rates reacting to energy prices. Spreads themselves have been very resilient,” said Jack Daley, portfolio manager at TwentyFour Asset Management. “For well-known, higher quality names, they will be able to come to the market and see strong demand.”
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Read: Amazon Deal Drives US Corporate Bond Sales to One-Day Record
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Amazon’s deal comes a month after it said it would invest about $200 billion in data centers, chips and other equipment in 2026, topping analysts’ estimates and causing some concerns among equity investors about when huge spending on AI would start to pay off.
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