Amazon’s latest bond demand drops sharply after March’s record haul

Amazon sold $25 billion in U.S. dollar bonds on July 7, 2026, to fund general corporate purposes, but investor demand totaled just $62 billion—roughly half the $124 billion in orders it attracted for its $37 billion March offering. The deal marks the company’s final planned U.S. dollar funding for 2026, with any future sales expected to be opportunistic, according to sources familiar with the matter. The July 7 issuance completes Amazon’s U.S. dollar borrowing needs for the year, following a March sale that became the fourth-largest U.S. corporate bond deal on record. Amazon has since diversified into other currencies, including a $16.6 billion euro-denominated bond in March, Swiss franc bonds in May, and Canadian dollar bonds last month. The latest bond was priced across up to eight tranches, ranging from three to 40 years, with the longest-dated note maturing in 2066. Demand for the July 7 deal fell short of the 2026 average for U.S. high-grade corporate bonds, which typically attract about four times the offering size. The 2066 tranche priced at 1.25 percentage points above Treasuries, a slight tightening from initial guidance. Barclays, Goldman Sachs, JPMorgan Chase, and Morgan Stanley led the sale. Proceeds will be used for general corporate purposes, including debt repayment, acquisitions, and capital expenditures. Amazon’s bond issuance this year has topped $100 billion, contributing to a global surge in AI-linked debt sales, which Bloomberg data shows reached $335 billion in 2026—more than double the 2025 total. The rapid expansion of AI infrastructure spending by hyperscalers has raised concerns about investor fatigue, with secondary-market prices for tech bonds weakening following Amazon’s latest sale. Sources include people familiar with the matter, Bloomberg-compiled data, and company representatives.