Amazon Hires Banks for First Sterling Bond Sale

On Tuesday, Amazon engaged banks for its inaugural sterling-denominated bond offering, according to an internal memo reviewed by Reuters, amid a broader push by hyperscalers to secure funding in multiple currencies for artificial intelligence-related investments.

The tech giant plans to issue bonds with maturities of three, six, twelve, and nineteen years, as detailed in the memo from one of the banks managing the transaction.

The sale could occur as soon as Wednesday, depending on market conditions, the memo added.

The memo did not disclose how much Amazon intends to raise through the bond issuance.

Major cloud and data-center operators like Amazon have increasingly sold bonds in non-U.S. markets this year, from euros to Swiss francs and yen, as they seek to diversify financing sources given the massive capital needs of the AI transition.

The scale of their debt issuance is already straining investor demand, particularly in the U.S. dollar bond market, where several large bond buyers warned over the summer that the market was showing signs of indigestion.

Amazon's sterling sale follows a similar move by Alphabet, Google's parent company, which in February raised £5.5 billion ($7.44 billion) from a five-part sterling deal that included a rare 100-year bond.