Amazon Issues $54 Billion in Bonds, Faces Massive Demand as Credit Rating Becomes Key Selling Point

[Global Times Finance Report] According to Bloomberg, this week Amazon issued $37 billion in bonds across 11 maturities in the U.S., with subscription orders from asset management institutions reaching as high as $126 billion, nearing a record high. On Wednesday, the company also issued bonds in the euro market for the first time, totaling €14.5 billion (about $16.8 billion), setting a record for the largest corporate bond issuance in the euro market history.

(Bloomberg screenshot)

John Servidea, Co-Head of Investment Grade Debt Capital Markets at J.P. Morgan, said that Wall Street banks have been advising companies that the current market environment is a “window that may open and close quickly.”

Servidea pointed out that due to significant fluctuations in the stock and bond markets over the past few weeks, Amazon’s relatively high credit rating has become a key selling point for these bonds. Additionally, Amazon is highly profitable, with an estimated net profit of about $78 billion in 2025.

For over a week, Amazon has been considering issuing bonds as it makes large investments in artificial intelligence. Last month, the company announced plans to invest approximately $200 billion in data centers, chips, and other equipment by 2026, exceeding analysts’ expectations.

However, the global corporate bond market nearly stalled earlier last week. A few days later, the market resumed operations, with issuance totaling about $51 billion.

This sales volume was enough to convince the tech giant and its banking team that market demand remains strong. An Amazon spokesperson said, “We regularly evaluate our operational plans and make financing decisions accordingly, such as signing credit agreements or issuing bonds.”

Investors said they were attracted by Amazon’s high credit quality. Robert Tipp, Chief Investment Strategist at PGIM Fixed Income, stated, “Within our foreseeable investment horizon, this is a high-quality credit asset, and investors are also seeking yields.”

In Europe, Amazon initially planned to issue at least €10 billion in bonds, but due to strong demand, the issuance was expanded to a record scale. At the peak of orders, investors placed more than €35 billion across eight different maturities. (Chen Shiyi)