BlockBeats News, March 10th, according to Bloomberg, Amazon is returning to the bond market with a massive cross-border issuance, further fueling the corporate borrowing spree driven by the artificial intelligence frenzy.
Sources familiar with the matter revealed that the company will issue up to 11 tranches in the form of U.S. investment-grade bonds, with maturities ranging from 2 to 50 years. The source added that initial pricing discussions for the longest-dated bond in this issuance (maturing in 2076) indicated a spread of about 1.55 basis points over U.S. treasuries. Due to the sensitive nature of the information involved, the source requested anonymity.
HSBC Holdings, Citigroup, Goldman Sachs, and JPMorgan will be responsible for underwriting this bond issuance. This is the latest example in a series of recent massive bond issuances by major cloud computing companies that are gearing up to invest billions of dollars in building artificial intelligence infrastructure. So far, investor demand remains strong, with recent bond offerings seeing subscription levels several times the issuance size.
