Amazon's $25B bond sale, its largest ever, drew $100B in orders. The company told investors it plans no further debt in 2026.
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Amazon priced a $25 billion bond offering Tuesday, the company's largest ever, and told investors it plans no additional debt issuance in 2026. The deal comes as the e-commerce giant funds its capital expenditure push into data centers and logistics.
The bonds, issued in eight tranches with maturities ranging from three to 40 years, drew orders exceeding $100 billion, according to a person familiar with the sale. Amazon said in a regulatory filing that proceeds will go toward general corporate purposes, including share buybacks and capital spending.
Chief Financial Officer Brian Olsavsky told analysts on the company's most recent earnings call that Amazon's capital expenditures would rise in 2025, driven by investments in artificial intelligence infrastructure. The bond sale locks in borrowing costs before any Federal Reserve rate cuts that could tighten credit spreads.
Amazon last tapped the investment-grade bond market in 2023, when it raised $12.75 billion. The company's debt load remains modest relative to its cash holdings, which stood at $87 billion at the end of the second quarter.
The 40-year tranche priced at 105 basis points over Treasuries, tight for a deal of this size, reflecting strong investor demand for high-grade corporate paper. Amazon's shares rose 0.8% in after-hours trading.
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