Raising $37 billion still isn't enough! Amazon (AMZN.US) issues eight tranches of €10 billion bonds, raising funds worldwide to prepare for computing infrastructure.

Amazon (AMZN.US) has officially launched a cross-currency bond issuance plan, aiming to raise approximately $37 billion to $42 billion from the dollar and euro markets. The most notable aspect of this financing effort is its record-breaking euro bond issuance. The company plans to issue bonds in the European market totaling up to €10 billion (approximately $11.6 billion), and unusually, it will split these into eight different maturities, spanning a wide range from 2 years to 38 years. Notably, Amazon completed the issuance of 11 tranches of dollar bonds on Tuesday, successfully raising $37 billion.

This joint bond issuance is likely to become one of the largest transactions in corporate bond issuance history and is the latest example of cloud computing companies engaging in a series of massive transactions to invest in artificial intelligence infrastructure. Amazon, Google (GOOGL.US), Meta Platforms Inc. (META.US), and Microsoft have all projected that their capital expenditures will reach about $650 billion by 2026.

The transaction employs a dual-currency and multi-maturity structure, allowing Amazon to reach different types of investor groups while effectively diversifying refinancing risks. Previously, the record for the highest number of tranches in the European market was set by LVMH Moët Hennessy Louis Vuitton SE in 2020, when the company issued seven tranches of bonds to acquire Tiffany & Co.

According to sources familiar with the transaction, the portion issued in the U.S. market attracted approximately $126 billion in subscription orders, ranking among the largest in corporate bond issuance history. Its issuance size was also raised from the initially guided $25 billion to $30 billion.

The core driver of this massive financing is Amazon’s almost “greedy” demand for AI infrastructure. The company has previously stated that to solidify its leading position in generative AI and cloud services, it expects capital expenditures to soar to $200 billion by 2026, exceeding analyst expectations and raising concerns among some equity investors about when the significant spending on AI will yield results.

These funds will be precisely directed towards expanding large-scale data centers, developing self-researched computing chips, and upgrading network infrastructure globally. Amid the pressure for profit release and the contradiction of computing power hunger faced by global tech giants, Amazon has chosen to secure long-term low-cost cash flow through debt financing, aiming to equip itself with “ammunition” for this prolonged AI consumption battle.

It is worth mentioning that the global bond issuance activity, previously suppressed due to a sharp rise in credit risk from the Middle East conflict, quickly resumed on Tuesday. After U.S. President Trump hinted that the war in Iraq would soon end, credit risk indicators promptly fell back. By Wednesday, reports indicated that JPMorgan was restricting loans to certain private credit funds, slightly cooling market sentiment towards risk.

However, demand for ultra-large corporate transactions remains robust in the credit market. Last month, Google successfully raised approximately $32 billion in the high-grade bond markets in the U.S. and Europe, with strong demand throughout the issuance process, particularly for its extremely rare 100-year pound-denominated bonds, which received a warm market response.

In this bond issuance by Amazon, JPMorgan serves as the global coordinator and is joined by Barclays, Bank of America, and Société Générale as book-running managers. The bond issuance is expected to complete pricing later today.