Amazon to Raise £4 Billion in Debut Sterling Bond Sale Amid Strong Demand

Amazon.com Inc. is poised to raise £4 billion (approximately $5.43 billion) in its inaugural sterling-denominated bond sale, which attracted significant investor interest, according to a lead manager on the deal. The move highlights a broader trend of major technology companies, or "hyperscalers," diversifying their funding sources to finance massive investments in artificial intelligence infrastructure.

Deal Attracts Strong Orders

The four-part offering saw robust demand, with investor orders exceeding £12 billion, a memo seen by Reuters indicated. The sale is structured to raise £1 billion from each of the four tranches with varying maturities:

• 3-year bonds pricing at a spread of 53 basis points over UK government bonds (Gilts).
• 6-year bonds pricing at 75 basis points over Gilts.
• 12-year bonds pricing at 90 basis points over Gilts.
• 19-year bonds pricing at 93 basis points over Gilts.

This marks the first time Amazon has issued debt in British pounds, adding to its previous bond sales in euros, Swiss francs, and Canadian dollars.

Hyperscalers Tap Global Debt Markets

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The sale is part of a larger rush by hyperscalers to secure capital from international markets to support the costly AI boom. These companies have issued more than $200 billion of debt so far this year, more than double the total for all of 2025, according to LSEG data.

The trend has prompted some market commentary. The European Central Bank warned earlier in September that the heavy issuance from these large tech firms in the eurozone could potentially crowd out other corporate borrowers and increase their financing costs. Google-parent Alphabet Inc. was the first hyperscaler to enter the sterling market this year, raising £5.5 billion in February.

Context and Investor Appetite

While this sterling deal was met with strong demand, it follows signs that the sheer volume of borrowing from tech giants may be testing the limits of investor appetite. An Amazon bond sale in July, which raised $25 billion, reportedly received weaker demand than the company's past offerings, suggesting that even top-tier issuers are not immune to potential market saturation.