Amazon launches first euro bonds: plans to issue 8 tranches of bonds, with a maximum maturity of 38 years

Amazon makes its first foray into the euro bond market, launching the sale of eight euro-denominated bonds on March 11. This issuance follows a massive dollar bond transaction completed earlier this week, marking the tech giant’s further expansion of its financing channels in the global capital markets.

According to Bloomberg, citing sources familiar with the matter, the euro bond issuance includes eight maturities, specifically 2-year, 4-year, 6-year, 9-year, 13-year, 19-year, and 38-year fixed-rate notes, along with one 2-year floating-rate note. The deal is expected to price later today.

In terms of underwriting, JPMorgan Chase serves as global coordinator and joint bookrunner, with Barclays, Bank of America Securities, and Société Générale acting as joint bookrunners.

Raising 10 billion to boost AI arms race

This euro bond issuance continues Amazon’s financing activities this week.

As reported previously by Wallstreetcn, on March 10, Amazon launched 11 U.S. dollar bond offerings, targeting a total of $37 billion, significantly raising the initial guidance of $25-30 billion, driven by about $123 billion in demand.

Meanwhile, reports indicate the company began its first euro bond issuance as early as March 11, aiming to raise €10 billion across two tranches, with a total nearly $50 billion.

This bond issuance is Amazon’s latest move to finance AI and data center infrastructure. The company disclosed a full-year capital expenditure plan of $200 billion in February, most of which will be invested in AI and related fields. CEO Andy Jassy stated that the company will actively invest to maintain industry leadership, focusing on in-house AI chips, robotics, and low Earth orbit satellites.

From the pricing perspective, strong demand has created favorable conditions for issuers. The longest 50-year dollar bond was finally priced with a spread of 130 basis points over U.S. Treasuries, below the initial negotiation of 155 basis points. Despite this, the new bonds offer over 10 basis points of extra yield compared to secondary market existing bonds, which some investors see as a rare allocation opportunity in the current market environment.

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