Amazon debuts euro bonds: plans to issue 8 tranches, with maturities up to 38 years

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Amazon entered the euro bond market for the first time, launching the sale of eight tranches of euro-denominated bonds on March 11. This issuance follows the tech giant’s massive U.S. dollar bond deal completed earlier this week, marking a further expansion of its financing channels in global capital markets.

According to Bloomberg citing people familiar with the matter, this euro bond issuance consists of eight maturities, specifically two-year, four-year, six-year, nine-year, thirteen-year, nineteen-year, and thirty-eight-year fixed-rate notes, as well as a two-year floating-rate note. Pricing for the deal is expected to be set later today.

For the underwriting arrangement, J.P. Morgan is the global coordinator and joint bookrunner, while Barclays, BofA Securities, and Société Générale serve as joint bookrunners.

Plans to Raise Ten Billion Euros to Ramp Up AI Arms Race

This euro bond issue continues Amazon’s financing actions this week.

According to a previous article by Wallstreetcn, on March 10, Amazon launched 11 tranches of U.S. dollar bonds with a target raise of $37 billion, significantly above the initial guidance of $25–30 billion, due to about $123 billion in subscription demand.

At the same time, it was reported that the company may begin its first euro bond sale as early as March 11, targeting 10 billion euros, bringing the total fundraising from the two deals close to $50 billion.

This bond issue is Amazon's latest move to finance AI and data center infrastructure. In February, the company disclosed its annual capital expenditure plan of $200 billion, most of which will go to AI and related fields. CEO Andy Jassy said the company would actively invest to maintain its industry-leading position, focusing on self-developed AI chips, robotics, and low-Earth orbit satellites.

In terms of pricing, strong demand brought favorable conditions for the issuer. The 50-year U.S. dollar bond, the longest in term, was finally priced at a spread of 130 basis points over U.S. Treasuries, lower than the initial guidance of 155 basis points. Nevertheless, the new bonds offer more than 10 basis points of extra yield over existing bonds in the secondary market, which some investors see as a rare allocation opportunity in the current market environment.

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