Amazon kicked off the busiest day ever recorded for the US corporate bond sales, with the intention of collecting almost 50 billion dollarsThe operation aims to take advantage of the greater calm in the markets after the President of the United States, Donald Trump, he hinted that the war with Iran could end soon. Sources close to the transaction have revealed to Financial Times The e-commerce giant yesterday launched 11 tranches of dollar-denominated debt to investors to raise $37 billion to ramp up its lending campaign to finance its massive investments in artificial intelligence.
Amazon: Big Tech's Rush to Loan
According to sources, the deal was increased from an initial valuation of $25 billion to $30 billion after attracting approximately $123 billion in orders. Amazon also reportedly aimed to raise another €10 billion from an initial euro-denominated bond issue scheduled to launch today. About a dozen blue-chip companies, including Honeywell Aerospace and the financial services divisions of Toyota e Ford Motor, rushed to increase debt, reviving a market that had slowed significantly since the conflict in the Middle East broke out more than a week ago.
Investment-grade bond issuance totaled more than $65 billion on Tuesday, surpassing the previous daily record of 52 billion in 2013, when Verizon It had sold $49 billion in bonds. "The time windows to close these deals are narrowing," said Mark Clegg, senior bond trader at Allspring Global Investments. "Whenever there's stability, capital market participants really have to step in."
Amazon: Bond sales are needed for AI
Amazon's bond sales mark the latest intensifying rush to borrow by big tech companies to finance the artificial intelligence infrastructureThe Seattle-based group raised $15 billion in November in its first U.S. bond issue in three years.
Rivals Oracle infrastructures they raised 25 billion last month, while A raised over $30 billion in a debt issue denominated in dollars, pounds, and Swiss francs. Amazon spooked the market in February by announcing a $200 billion capital investment plan this year, surpassing competitors such as Google e ecosystemMost of the spending will go towards artificial intelligence and the creation of infrastructure for data center.
