Amazon Enters UK Debt Market With Inaugural Sterling Bond Sale

Amazon.com, Inc. (AMZN) on Wednesday launched its first-ever bond sale denominated in British pounds, tapping a new currency market to help finance its significant investments in artificial intelligence. The move follows a similar trend by other major technology firms diversifying their funding sources globally.

The Offering

According to a memo from banks managing the transaction, the multi-tranche deal includes bonds with several different maturities. Initial price guidance was set at spreads over British government bonds, also known as gilts:

• Three-year maturity: approximately 70 basis points over gilts
• Six-year maturity: around 90 basis points over gilts
• 12-year maturity: approximately 105 basis points over gilts
• 19-year maturity: around 110 basis points over gilts

The bonds were expected to be priced later on Wednesday. This sterling issuance expands Amazon's funding program, which has previously accessed the euro and Swiss franc bond markets.

AI Arms Race Fuels Debt Binge

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The sale is part of an aggressive capital-raising campaign by technology companies to build out AI infrastructure. According to LSEG data, major tech firms have issued more than $200 billion in debt so far this year, more than double the total amount raised in all of 2025.

Google-parent Alphabet (GOOGL) was the first major tech company to enter the sterling market this year, raising £5.5 billion in February. Alphabet has also issued debt in Japanese yen, Canadian dollars, and Australian dollars in 2026.

Investor Appetite and Market Impact

While demand for tech debt has been strong, there are signs that investor appetite may be nearing its limits. Amazon's last bond sale in July, a $25 billion offering, reportedly drew weaker demand than its previous issues.

Separately, the European Central Bank commented earlier in September that the surge in bond issuance by large tech companies in the euro zone could potentially crowd out other corporate borrowers and increase their financing costs. This highlights a potential risk for the broader corporate debt market as the AI funding rush continues.