Amazon Raises €14.5B in Bonds, Plans $13B for India Delivery Expansion
AMZN•Amazon issued €14.5B in euro bonds as part of $60B of multi-currency debt to fund AI-driven capex while its stock steadied on Prime Day and cloud price hikes. It will invest $13B in AI and cloud infrastructure and expand Amazon Now to 300 Indian cities, intensifying competition in rapid commerce.
1. Multi-Currency Bond Issuance
Amazon issued €14.5B in euro bonds, part of over $60B in various currency bonds in the past 12 months to diversify funding and support AI-driven chip and data center spending. The deal set a record as the largest euro corporate bond sale and underlines the need for external funding as capex outpaces operating cash flow.
2. Stock Steadiness and Cloud Price Hike
After unveiling preliminary Prime Day sales data, Amazon's shares held steady as the company implemented a cloud service price increase to bolster revenue and offset rising infrastructure costs. The price adjustment targets enterprise customers and reflects rising demand for cloud capacity.
3. Rapid Delivery Expansion in India
Amazon pledged $13B for AI and cloud infrastructure and will expand its Amazon Now service from 15 to 300 Indian cities, intensifying competition in the $11B rapid-commerce market dominated by Blinkit and Instamart. This push involves building out last-mile dark stores and aggressive discounts to capture market share.
