Amazon issues longest 50-year bond for funding AI development.
Amazon is re-entering the bond market, joining the wave of corporate financing led by artificial intelligence. According to sources, the company plans to issue bonds with as many as 11 different maturities, ranging from 2 years to 50 years. The preliminary pricing discussion for the longest maturity part of this deal suggests a yield spread of around 1.55 percentage points above U.S. Treasuries. HSBC Holdings, Citigroup, Goldman Sachs, and JPMorgan Chase will be responsible for underwriting this bond issuance. This is the latest example of a series of large bond issuances by major cloud computing companies, which are preparing to invest tens of billions of dollars in building artificial intelligence infrastructure. So far, investor demand remains strong, with recent bond issuances multiple times oversubscribed.
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