Amazon (AMZN) Taps the UK Bond Market for the First Time. Here’s Why

TLDR

• Amazon has sold sterling bonds for the first time, adding British pounds to its funding mix alongside euros and Swiss francs.
• Initial price guidance ranged from 70 basis points over UK government bonds for three years to 110 basis points over for 19 years.
• Big tech companies have issued more than $200 billion in debt in 2026, more than double the total raised in all of 2025.
• Alphabet was the first hyperscaler to tap the sterling market in February, raising £5.5 billion including a 100-year bond.
• Amazon’s last bond sale in July raised $25 billion but drew weaker demand, raising questions about investor appetite.

Amazon made history on Wednesday by entering the British pound bond market for the first time, becoming the latest major tech company to spread its borrowing across global currencies.

Amazon.com, Inc., AMZN

The deal adds sterling to Amazon’s growing list of funding currencies, which already includes the euro and Swiss franc. Alphabet blazed the trail in February, raising £5.5 billion in a five-part sterling offering that included a rare 100-year bond.

The offering came with initial price guidance set at around 70 basis points over UK government bonds on a three-year maturity. For six years, guidance was set at around 90 basis points over. Twelve-year debt was priced at around 105 basis points over, and the 19-year tranche came in at around 110 basis points above gilts.

The deal was expected to price later Wednesday.

Big Tech’s Debt Machine Keeps Turning

Tech giants have now issued more than $200 billion in debt in 2026 alone. That is more than double what the entire sector raised throughout 2025, according to LSEG data.

The rush to raise capital across multiple currencies comes down to one thing: AI infrastructure. These companies need vast amounts of capital to build out data centers and computing capacity, and they are going wherever the money is.

Alphabet has gone furthest in diversifying its debt, raising funds in Japanese yen, Canadian dollars, and Australian dollars this year on top of its sterling deal.

The European Central Bank flagged the trend earlier in September, warning that heavy bond issuance from hyperscalers in euro zone markets could squeeze out other borrowers and push up their financing costs.

Questions Around Investor Appetite

Amazon’s last trip to the bond market was in July, when it raised $25 billion. That offering drew weaker demand than previous sales, one of several signs that investors may be starting to feel the weight of the volume coming from big tech borrowers.

Whether the sterling market responds more warmly remains to be seen. The bonds were set to price later on Wednesday.

AMZN stock was down 0.60% on Wednesday, while GOOGL slipped 0.03%.

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