Amazon Launches First Sterling Bond Sale to Fund AI

Amazon.com Inc. launched its first-ever sterling bond sale on Wednesday, issuing a four-part deal with maturities ranging from three to 19 years. Initial pricing for the tranches is set between approximately 70 basis points over UK gilts for the shortest term and 110 basis points for the longest.

Managed by JPMorgan Chase & Co., Barclays Plc, HSBC Holdings Plc, and Natwest Group Plc, the issuance follows a period of aggressive borrowing. This marks the company's fourth venture into non-US dollar markets in 2026, following record-breaking offerings in euros, Swiss francs, and Canadian dollars.

Amazon has become the leading bond issuer among hyperscalers this year, selling more than $92 billion in securities. These funds support a $220 billion capital spending plan primarily dedicated to artificial intelligence. Despite the company's scale, some investors have shown signs of fatigue, resulting in wider spreads and weaker demand in recent offerings.