Amazon wants to sell US bonds in order to raise $12 billion

As big tech corporations increase their spending to develop artificial intelligence infrastructure, Bloomberg News reported on Monday that Amazon intends to raise almost $12 billion in corporate bonds, its first such sale in US dollars in roughly three years.

In a filing with the Securities and Exchange Commission (SEC) that same day, the e-commerce behemoth requested the issue of six-tranche bonds without revealing the total amount. When Reuters contacted the company, it refused to give more information regarding the bond offering.

Large tech businesses are using large-scale debt offerings to finance infrastructure expansions costing tens of billions of dollars as artificial intelligence workloads rise.

Initial discussions on the pricing of the deal’s longest tranche, a 40-year bond, indicate a premium of roughly 1.15 percentage points above Treasury bonds, according to Bloomberg News, which cited people familiar with the situation.

Oracle, a company that makes software and cloud infrastructure, is also looking to raise $15 billion through bond sales, while Meta Platforms revealed last month that it has raised up to $30 billion through its largest bond offer to date.