The Globe and Mail reports in its Tuesday edition that Amazon is set to raise $15-billion (U.S.) from its first U.S. dollar bond offering in three years, as big tech firms increase investments to build infrastructure for artificial intelligence. A Reuters dispatch to The Globe says Bloomberg News reports that the proceeds topped initial estimates of $12-billion (U.S.).
As artificial intelligence workloads grow, big technology firms are turning to large-scale debt sales to finance infrastructure expansions that cost tens of billions of dollars. Amazon said in a regulatory filing it has filed for a six-part bond sale on Monday, but did not disclose more details. It declined to comment on the details provided in the Bloomberg report. At the peak, the bond attracted about $80-billion of demand, Bloomberg reported. Proceeds may be used for everything, from acquisitions and capital expenditures to share buybacks.
Pricing discussions for the longest portion of the deal, a 40-year bond, tightened to 0.85 percentage point above Treasuries, from 1.15 percentage point initially, Bloomberg said.
Last month, Meta announced a bond sale of up to $30-billion. Oracle is reportedly looking to raise $15-billion in bond sales.
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