Amazon raised $25 billion in a surprise bond sale on July 7, increasing its total debt issuance to $92 billion this year, surpassing Google, Meta, and Oracle, according to fortune.com. The offering came with an extra yield of 18 to 21 basis points on its longest bonds to attract investors.
The bond sale drew weaker demand than previous offerings, with orders at 2.5 times the bonds on offer, down from 3.2 times in March. Bank of America described the sale as the weakest new-issue performance for any hyperscaler since Meta’s $30 billion bond sale in October 2025. Despite the lower demand, Amazon maintained more buyers for its investment-grade debt, rated AA by Moody’s and S1 by S&P.
The $270 billion in AI-related debt issued this year nearly doubles the $136 billion issued in 2025, reflecting strong financing activity in the AI sector. However, the slower demand for Amazon’s bonds signals potential investor caution about the hyperscaler and AI supply outlook, as noted by Bank of America.
Amazon’s $25 billion bond sale on July 7 marks a key data point in the ongoing surge of tech debt issuance, with the company’s total debt issuance this year now at $92 billion, the highest among major tech firms, per fortune.com.