Key facts
- Amazon issued C$14 billion in Canadian dollar-denominated notes.
- This issuance is the largest ever in the Canadian corporate bond market.
Amazon has issued C$14 billion ($10.04 billion) in Canadian dollar-denominated notes, setting a new record for the Canadian corporate bond market. The deal aims to diversify funding for the e-commerce giant's investments in AI infrastructure.
Amazon's record-setting bond issuance highlights the growing attractiveness of Canada's debt market for large international corporations and signals continued investment in AI infrastructure by major tech companies.
Amazon has set a new record in the Canadian corporate bond market with its issuance of C$14 billion ($10.04 billion) in Canadian dollar-denominated notes. The deal, structured in five parts with maturities ranging from 2029 to 2056, surpasses the previous record of C$8.5 billion set by Alphabet last month.
Global companies are increasingly tapping Canada's "maple bond" market, attracted by strong investor demand and lower borrowing costs. This move by Amazon, a Seattle-based e-commerce giant, aligns with a broader strategy by major tech firms, often termed "hyperscalers," to diversify their funding sources outside the U.S. These companies are looking to finance significant investments in AI infrastructure, particularly data centers.
The pricing for the notes reflects their maturity: the 2029 notes were priced at a spread of 40 basis points over the Government of Canada curve, while the longer-dated 2056 notes were priced at 110 basis points over the 3.50% Government of Canada bond due in December 2057. In March, Amazon also completed a significant financing deal, raising 14.5 billion euros in the euro corporate bond market.