Amazon, the world's largest cloud company, will issue more than 38 trillion won worth of corporate bonds to fund investment in artificial intelligence (AI) infrastructure, including data centers.
Amazon disclosed Friday that it would issue dollar-denominated corporate bonds structured across eight short- and long-term maturities, without specifying the amount or interest rate terms. Bloomberg, citing sources, reported that the fundraising would exceed $25 billion (about 38 trillion won). The initial target yield on the longest-dated 40-year note is being discussed at a spread of about 1.45 percentage points over U.S. Treasury yields.
Amazon's large-scale bond issuance is attributed to massive investment in AI infrastructure, including data centers. In March this year, Amazon had already issued $37 billion in dollar-denominated bonds—the fourth-largest such offering by a U.S. company—along with 14.5 billion euros in euro-denominated bonds. It followed with 2.82 billion Swiss francs in bonds in May and 14 billion Canadian dollars in bonds in June. The company set new records for the largest corporate bond issuances in the European and Canadian financial markets. Amazon also borrowed a combined $17.5 billion from Citibank, BofA, JPMorgan, HSBC, and Wells Fargo on Nov. 8.
Earlier this year, Amazon set its AI capital expenditure (CAPEX) for the year at $200 billion (about 306 trillion won), the highest among hyperscalers (ultra-large cloud operators). The market expects this bond issuance to conclude Amazon's dollar-denominated fundraising target for the year.
According to Bloomberg, Amazon's additional bond issuance brings total global AI-related bond issuance this year to $335 billion (about 510 trillion won). This is more than double the total AI-related corporate bond issuance last year. Beyond Amazon, other Big Tech companies have also been aggressively issuing large dollar-denominated bonds this year, including Oracle ($25 billion) and Google parent Alphabet ($20 billion) in February, Meta ($25 billion) in April, and Nvidia ($25 billion) and SpaceX ($25 billion) in June.
