Amazon issues up to $42 billion in bonds to fund AI expansion

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Investing.com – Amazon (NASDAQ:AMZN) has launched one of the largest corporate bond offerings in history, aiming to raise $37 billion to $42 billion in the U.S. dollar and euro markets for artificial intelligence investments.

According to Bloomberg News, the tech company is marketing U.S. high-grade bonds, covering up to 11 tranches, with maturities ranging from 2 to 50 years, targeting to raise $25 billion to $30 billion. Sources requested anonymity due to the private nature of the discussions.

An insider revealed that the initial price discussions for the longest maturity tranche, bonds maturing in 2076, set a spread of approximately 1.55 percentage points over U.S. Treasuries.

Amazon also plans to raise up to €10 billion through its first euro bond issuance, potentially including 8 tranches with maturities from 2 to 38 years. The issuance of 8 tranches in the euro market would be unprecedented.

This transatlantic financing represents the latest large-scale corporate borrowing aimed at fueling the ongoing artificial intelligence boom.

This article was translated with the assistance of artificial intelligence. For more information, see our Terms of Use.

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