Amazon has successfully raised $US37 billion ($52 billion) through a US dollar bond sale. The offering may expand to nearly $US50 billion with a planned euro debt offering. Amazon is an online retail and cloud computing company. They offer a variety of products and services to consumers and businesses worldwide.
The blockbuster fundraising marks the fourth-largest US corporate bond sale on record and the biggest not tied to an acquisition. Due to strong demand, the offering was increased from an initial range of $US25 billion to $US30 billion. Amazon issued US high-grade debt across 11 tranches, with maturities spanning from two to 50 years.
Notably, the pricing on the longest portion of the offering, a note maturing in 2076, tightened by 0.25 percentage points to 1.3 percentage points above Treasuries, according to sources familiar with the deal. The US portion of the bond sale attracted approximately $US126 billion ($177 billion) in orders, representing one of the largest order books ever seen for a corporate offering.
Furthermore, Amazon intends to debut in the European market with a potential eight-part bond sale, aiming to raise at least €10 billion ($US16.3 billion). The bonds will have maturities ranging from two to 38 years and are slated to be offered as early as Wednesday. If completed, this would represent the highest number of tranches sold by a company in the European region.
