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(Bloomberg) — Amazon.com Inc. is seeking to raise at least C$7 billion ($5 billion) from investment-grade bonds in Canadian dollars as US hyperscalers look beyond their home market to fund artificial intelligence spending.
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The debut offering could reach as much as C$10 billion, though no final decision has been made on the size of the deal, people familiar with the matter said, asking not to be identified as discussions are private.
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The cloud-computing giants at the center of the AI boom are scouring global debt markets for funding as they plan to invest hundreds of billions of dollars on data centers, chips and other infrastructure.
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Amazon, which is expected to spend almost $200 billion this year, has already raised more than $70 billion of debt since last year, including from a euro-denominated bond sale in March.
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Amazon is offering senior unsecured notes in five parts, with maturities ranging from three to 30 years, the people said. Initial price talk on the longest tenor is about 1.15 percentage points above the benchmark.
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Amazon and the banks running the deal, JPMorgan Chase & Co., Royal Bank of Canada, Bank of Nova Scotia and Toronto-Dominion Bank, didn’t immediately respond to a comment request or provide a comment.
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The move comes about one month after Alphabet Inc. raised C$8.5 billion ($6.1 billion) from a four-part bond sale in Canadian dollars, marking the largest-ever corporate offering in the currency.
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“Accessing Canada’s market after Alphabet’s recent deal suggests more borrowing in alternative currencies or equity, as data-capacity spending accelerates,” Bloomberg Intelligence analysts Robert Schiffman and Alex Reid said in a note to clients. The firm’s return to the bond market “suggests its AI investment is on a trajectory in 2027 that’s meaningfully higher than the $200 billion anticipated in 2026.”
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Issuer Profile
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Debt distribution: AMZN US Equity DDIS
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Capital structure: AMZN US Equity CAST
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Related securities: AMZN US Equity RELS
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Ratings history: AMZN US Equity CRPR
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This story was produced with the assistance of Bloomberg Automation
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—With assistance from Kevin Kingsbury.
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(Updates with deal’s size in headline and first paragraph)
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English (US)