Amazon will raise $5.8 billion in first sterling bond sale, lead managers say

Amazon AMZN.O will raise £4.25 billion ($5.76 billion) in its first-ever sterling bond sale, more than initially expected, according to a bank managing the deal, as hyperscalers rush to diversify their funding sources to finance the AI boom.

The deal, which saw strong demand, is the latest example of how hyperscalers are increasingly selling bonds across markets outside of the U.S. this year, from euros to Swiss francs and the yen, as they make sure they can raise capital wherever they can, given their huge funding needs.

They have already issued more than $200 billion of debt this year, more than doubling from the whole of 2025, according to LSEG data.

Amazon saw over £12 billion in demand for the four-part deal. It will raise £1.25 billion from 3-year bonds, and £1 billion each from 6-, 12- and 19-year bonds, according to the memo sent by the lead manager seen by Reuters.

They will price to offer spreads of 53 basis points, 75 basis points, 90 basis points and 93 basis points, respectively, over corresponding British government bonds, the memo added.

The pound is the latest currency Amazon has added to its funding programme after tapping the euro, Swiss franc and Canadian dollar bond markets.

The European Central Bank warned earlier in September that hyperscalers' push into the euro zone bond market could potentially crowd out other borrowers and push up their financing costs.