Global Market: Amazon diversifies debt funding with first Sterling bond offering

Amazon has launched its first sterling-denominated bond sale, with four maturities ranging from three to 19 years, as hyperscalers diversify funding sources to finance heavy AI infrastructure spending and data-centre expansion. The move marks Amazon's first foray into the sterling bond market, a departure from its previous reliance on US dollar-denominated debt. The four-year, 10-year, 15-year, and 19-year bonds carry yields of 3.5%, 3.75%, 4%, and 4.25% respectively. The sale is part of Amazon's efforts to reduce its debt dependence on Wall Street, with the company aiming to shift towards more diversified funding sources. The move is seen as a strategic shift by Amazon to diversify its funding options and reduce its reliance on the US dollar. The sale has been met with interest from institutional investors, with several major investors participating in the bond sale. Amazon's move is expected to have implications for the global debt market, with analysts predicting a shift towards more diversified funding sources in the coming years. The company's focus on AI infrastructure spending and data-centre expansion is expected to drive demand for debt funding in the coming years. Amazon's decision to tap the sterling bond market is seen as a strategic move to reduce its debt dependence and increase its financial flexibility. The company's efforts to diversify its funding sources are expected to have a positive impact on its financial performance and reduce its reliance on Wall Street.