Amazon's Euro Bond Debut: Plan to Issue Eight Tranches, with Maturity Up to 38 Years

Amazon made its debut in the euro bond market on March 11, launching the sale of eight tranches of euro-denominated bonds. This move follows the company’s massive U.S. dollar bond deal earlier this week, marking another step for the tech giant to expand its global capital market funding channels.

According to sources cited by Bloomberg, this euro bond offering comprises eight different maturities, including fixed-rate notes with tenors of two, four, six, nine, thirteen, nineteen, and thirty-eight years, as well as a two-year floating-rate note. Pricing is expected later today.

In terms of underwriting structure, JPMorgan Chase serves as global coordinator and joint bookrunner, while Barclays, BofA Securities, and Société Générale jointly serve as joint bookrunners.

Targeting €10 Billion to Fuel AI Arms Race

This euro bond issuance continues Amazon’s aggressive financing activities this week.

As reported previously by Wall Street Insights, on March 10, Amazon launched an issuance of 11 U.S. dollar bonds targeting $37 billion in proceeds—significantly exceeding the initial guidance of $25–30 billion—due to strong demand amounting to approximately $123 billion in subscriptions.

Meanwhile, reports indicate that the company began its first euro bond issuance on March 11, aiming to raise €10 billion. Combined, these two transactions bring total financing close to $50 billion.

This debt issuance represents Amazon’s latest move to fund investments in AI and data center infrastructure. In February, the company revealed its full-year capital expenditure plan totaling $200 billion, with the majority allocated to AI and related areas. CEO Andy Jassy stated the company will actively invest to maintain its industry leadership, focusing on self-developed AI chips, robotics technology, and near-Earth orbit satellites.

From a pricing perspective, robust investor demand has provided favorable conditions for the issuer. The longest-dated 50-year U.S. dollar bond was ultimately priced at a spread of 130 basis points over U.S. Treasuries—lower than the initial target of 155 basis points. Nevertheless, the new issue offers more than 10 basis points of additional yield compared to existing bonds in the secondary market, presenting some investors with a rare allocation opportunity in the current market environment.