Amazon.com Inc. sold C$14 billion ($10 billion) of Canadian dollar high-grade bonds on Monday, marking the largest corporate debt offering on record in the currency. The transaction surpassed Alphabet Inc.’s C$8.5 billion Canadian dollar sale from just one month earlier, cementing a new high for the market.
The cloud-computing giant sold senior unsecured notes across five parts with maturities ranging from three to 30 years. Investors placed more than C$28 billion in orders, drawing about twice the amount offered. The longest tranche was priced at 1.10 percentage points above Canadian government bonds, tightening by 5 basis points from initial discussions.
Amazon is expected to spend around $200 billion this year on data centers, chips, and other artificial intelligence infrastructure. The company has now borrowed more than $82 billion since the start of 2025, including debt sales in euros and Swiss francs. A company spokesperson stated proceeds will support general corporate purposes, including business investments, future capital expenditures, and debt repayment.
The five largest hyperscalers Amazon, Alphabet, Meta Platforms Inc., Microsoft Corporation, and Oracle Corporation issued $121 billion in corporate bonds in 2025, compared with an average of $28 billion per year between 2020 and 2024. Bank of America analysts forecast hyperscaler debt issuance could reach $175 billion in 2026.
Bloomberg Intelligence analysts Robert Schiffman and Alex Reid said Amazon’s rapid return to debt markets after its Swiss franc deal suggests the company’s AI investment trajectory for 2027 may be meaningfully higher than the $200 billion anticipated for 2026. The flood of debt was enough to weaken corporate bonds relative to government securities, with spreads widening by as much as 0.03 percentage point following the sale.
JPMorgan Chase & Co., Royal Bank of Canada, Bank of Nova Scotia, and Toronto-Dominion Bank managed the deal. Amazon’s sale positions the company among the 10 largest issuers in the Canadian investment-grade corporate bond market based on index-eligible debt outstanding.
Canadian investors’ embrace of hyperscaler debt is driven by demand for diversification and exposure to the technology sector. Last year’s inclusion of notes by non-Canadian companies in the FTSE Canada Universe Bond Index also means more demand from investors seeking to match the composition and duration of the index.
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