Amazon starts first sterling bond sale after $25 billion dollar deal drew weaker demand
Amazon opened books Wednesday, September 9, 2026, on its first sterling bonds, at least £3 billion, after a $25 billion dollar sale in July drew weaker demand.
Amazon, the e-commerce and cloud company, began selling pound bonds for the first time on Wednesday, the banks running the deal told Reuters, adding sterling as a fourth new currency this year after euro, Swiss-franc and Canadian-dollar debuts. Hyperscalers, the large cloud companies building AI data centers, have issued more than $200 billion of debt in 2026, more than double 2025, and have also been selling yen, Reuters said.
Those earlier sales included a record €14.5 billion debut in March, 2.82 billion Swiss francs in May and C$14 billion, about $10 billion, of Canadian-dollar notes in June. It is Amazon’s first bond sale since a $25 billion dollar offering in July that, Reuters said, drew weaker demand than past deals. Bloomberg reported the company is raising at least £3 billion. Initial guidance on the four parts, maturing in three, six, 12 and 19 years, was about 70, 90, 105 and 110 basis points over UK government bonds, or gilts, Reuters reported from a memo sent by three of the banks. The notes are due to price later Wednesday. Bloomberg named JPMorgan Chase, Barclays, HSBC and NatWest as managers. Alphabet raised £5.5 billion of sterling bonds in February, including a 100-year tranche, so Amazon’s 19-year piece is long for a corporate, not a first test of UK demand for ultra-long US tech paper.
The new notes sit outside the dollar indexes most US credit-fund holders own. In Vanguard’s intermediate-term investment-grade corporate bond fund VCIT, which grades A under etf.net’s published method, an Amazon 4.88% note due 2036 was the largest holding as of Tuesday, at 0.29% of $69.8 billion in assets. Sterling paper will land in non-dollar index funds most of those holders do not own. State Street’s international investment-grade corporate fund IBND, which grades D under that method, charges 0.50% and has $459 million in assets. For holders of the big US dollar credit funds, Wednesday’s sale is a new currency for Amazon, not a new line in the portfolio, and there is nothing for those holders to do on the launch.
Frequently asked
Why is Amazon selling bonds in pounds?
The article does not give a reason, but notes sterling is Amazon's fourth new currency this year after euro, Swiss-franc and Canadian-dollar debuts, and its first sale since a dollar deal that drew weaker demand.
Does this show up in my US corporate bond ETF?
No: the sterling notes sit outside the dollar indexes most US credit funds own, and would land in non-dollar index funds those holders generally don't hold.
Is a 19-year maturity a stretch for UK investors?
No: Alphabet already sold sterling bonds including a 100-year tranche, so Amazon's longest piece is long for a corporate but not a first test of UK demand for US tech paper.
How much are hyperscalers borrowing overall?
The large cloud companies building AI data centers have issued more than $200 billion of debt in 2026, more than double the prior year.