Amazon secures C$14 billion in a record-setting sale of Canadian dollar bonds to finance its AI investments.

      Amazon is set to raise C$14 billion (around $10 billion) in Canada's largest corporate bond issuance to date, surpassing Alphabet’s previous record of C$8.5 billion from May. According to Bloomberg, this fundraising effort involves investment-grade bonds denominated in Canadian dollars, making it the largest corporate bond sale in that currency.

      The offering comprises five tranches of senior unsecured notes, with maturities ranging from three to 30 years. The pricing for the longest tranche has tightened by 5 basis points to 1.10 percentage points above Canadian government bonds, indicating strong demand from investors. The deal is being managed by JPMorgan, Royal Bank of Canada, Bank of Nova Scotia, and Toronto-Dominion Bank.

      Amazon indicated that the proceeds will be allocated for general corporate purposes, which may include business investments, future capital expenditures, and debt repayment, with a primary focus on AI infrastructure. The company is projected to spend nearly $200 billion this year on data centers, chips, and related infrastructure, a significant increase from approximately $83 billion in 2024 and $125 billion in 2025.

      This Canadian dollar offering is part of Amazon's ongoing global debt strategy, having raised over $70 billion in debt since the beginning of 2025. This includes a $37 billion deal in US dollars in March, a €14.5 billion euro issuance shortly thereafter, and its first bond in Swiss francs in May, which raised CHF 2.82 billion across six parts.

      Amazon's approach is not isolated; Alphabet has similarly issued bonds in various currencies, including US dollars, euros, pounds, Swiss francs, yen, and now Canadian dollars. Analysts from Bloomberg Intelligence, Robert Schiffman and Alex Reid, noted that Amazon's return to the bond market following the Swiss issuance indicates a potential upward revision of its AI investment forecast for 2027, beyond the $200 billion expected for this year.

      In 2025 alone, the five largest hyperscalers—Amazon, Alphabet, Microsoft, Meta, and Oracle—issued $121 billion in corporate bonds, compared to an average of $28 billion annually from 2020 to 2024. UBS credit strategists project that this sector may need to borrow between $230 billion and $240 billion in 2026, while Morgan Stanley and JPMorgan estimate that it might require up to $1.5 trillion in additional debt over the coming years to support the ongoing AI infrastructure expansion.

      Currently, Amazon's credit position appears stable. The company generated around $100 billion in free cash flow in fiscal 2025, and operating margins for AWS have remained above 30%. Nevertheless, given the massive scale of its spending, even the most affluent tech companies are opting to borrow rather than solely relying on cash reserves. The competitive landscape of AI spending has transformed the finance strategies of hyperscalers into multi-currency sovereign-style borrowing, with the Canadian dollar representing the latest market capable of accommodating this demand.