Amazon sells record C$14B Canadian bond to fund AI

Amazon Sells Record C$14 Billion Canadian Bond to Fund AI Build-Out

Amazon sold C$14 billion (approximately $10 billion) in investment-grade bonds denominated in Canadian dollars on Monday, setting a new record for the largest corporate bond offering ever in the currency. The five-part deal surpassed Alphabet’s C$8.5 billion Canadian dollar issuance from just one month earlier.thenextweb

A Global Debt Tour

The offering consisted of five tranches of senior unsecured notes with maturities ranging from three to 30 years, according to Bloomberg. Pricing on the longest tranche tightened by 5 basis points to 1.10 percentage points above Canadian government bonds, reflecting strong demand from investors. JPMorgan, Royal Bank of Canada, Bank of Nova Scotia, and Toronto-Dominion Bank managed the deal.thenextweb

Amazon said proceeds will go toward general corporate purposes, including business investments, capital expenditures, and debt repayment. The underlying driver, however, is artificial intelligence infrastructure. The company is expected to spend close to $200 billion this year on data centers, chips, and related equipment, up from roughly $125 billion in 2025 and $83 billion in 2024.investing

The Canadian dollar sale is the latest stop in what has become a multi-currency global borrowing campaign. Since the start of 2025, Amazon has raised more than $70 billion in debt, including a $37 billion U.S. dollar deal in March, a 14.5 billion euro offering shortly after, and its first Swiss franc bond in May. Bloomberg Intelligence analysts Robert Schiffman and Alex Reid said Amazon’s rapid return to debt markets after the Swiss deal suggests its AI spending trajectory for 2027 may be “meaningfully higher” than this year’s $200 billion target.bloomberg

The Hyperscaler Borrowing Boom

Amazon is far from alone. The five largest hyperscalers — Amazon, Alphabet, Microsoft, Meta, and Oracle — issued $121 billion of corporate bonds in 2025, compared with an average of $28 billion per year between 2020 and 2024. Analysts at BofA Global Research have forecast hyperscaler debt issuance could reach $175 billion in 2026, while Morgan Stanley and JPMorgan have projected the sector may need as much as $1.5 trillion in additional borrowing over the coming years to sustain the AI build-out.yahoo

Amazon’s credit position remains stable for now — the company generated approximately $100 billion in free cash flow in fiscal 2025, and its AWS operating margins have stayed above 30 percent. But the scale of capital required has turned even the wealthiest technology companies into what Reuters described as “sovereign-style borrowers,” tapping markets across currencies and continents to keep the AI infrastructure race funded.thenextweb