Wall Street rises as materials and crypto stocks offset continued bond sell-off
Investing.com -- Amazon.com Inc. (NASDAQ:AMZN) finalized a massive $25 billion investment-grade bond sale on Tuesday to keep feeding its hungry AI infrastructure machine. According to Bloomberg, the offering drew a hefty $62 billion in peak investor demand. However, appetite cooled significantly compared to Amazon’s blockbuster $37 billion debt sale in March, which pulled in double the order volume.
The deal pushes Amazon’s total borrowing past the $100 billion mark over the last year, fueling a projected $200 billion capital expenditure budget for 2026.
The $25B Breakdown:
The eight-part offering spanned maturities from 3 to 40 years, with all tranches pricing tighter than initial guidance thanks to Amazon’s stellar credit ratings (A1/AA/AA-).
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Floating Rate: $750M (3-year) at 58 bps over SOFR.
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Short-Term Fixed: $3.5B (3-year) at 40 bps over Treasuries; $4.25B (5-year) at 55 bps; $3B (7-year) at 70 bps.
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Medium-Term Fixed: $4.5B (10-year) at 80 bps over Treasuries.
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Long-Term Fixed: $2.75B (20-year) at 100 bps; $4B (30-year) at 110 bps; $2.25B (40-year) at 125 bps.
This mega-transaction single-handedly pushes global AI-linked debt issuance past $335 billion for the year. Amazon has reportedly signaled to underwriters that this sale taps them out for additional debt for the remainder of 2026.
