Amazon hired JPMorgan Chase, Barclays, HSBC and NatWest to sell its first sterling-denominated bond, raising £4.25 billion across four tranches to help fund its AI buildout. The sale adds Amazon to a wave of hyperscaler debt issuance that has already topped $200 billion in 2026, even as the company's free cash flow has turned negative.
Amazon sells its first sterling bond
Amazon hired JPMorgan Chase, Barclays, HSBC and NatWest to arrange its first-ever sterling-denominated bond sale, Reuters reported on September 8, 2026. The company plans to issue bonds with maturities of three, six, 12, and 19 years. The deal priced the next day, raising £4.25 billion.
The sterling sale gives Amazon access to UK investors alongside its existing dollar, euro, Swiss franc and yen funding. Amazon can use the proceeds to support data-center and AI infrastructure investment without issuing more shares and diluting existing shareholders. Alphabet completed its own £5.5 billion sterling bond sale earlier this year, showing UK investors can absorb large technology-sector offerings.
Debt funds AWS growth as cash flow turns negative
The borrowing supports Amazon's fastest-growing major business. AWS revenue grew 37% year over year in Q2 2026, marking its fastest growth in 18 quarters. Amazon's strong credit rating gives it access to global debt markets even as the company accelerates AI spending.
However, that spending has a cost. Amazon's free cash flow turned negative as it sped up capital spending on AI infrastructure, and its 2026 capital expenditure plans reached roughly $220 billion. Hyperscalers overall have issued roughly $220 billion of debt over the past year, and the volume has started to test investor demand. Amazon's sale also follows more than $200 billion in hyperscaler debt issuance so far in 2026, more than double the total for all of 2025, according to LSEG data.
Long-dated debt ties Amazon to its AI cycle
The 19-year tranche locks Amazon into interest payments for almost two decades. If AI demand, technology, or data-center economics change materially over that period, Amazon could carry financing costs against infrastructure that produces lower returns than management expects.
Hedge fund conviction in Amazon has grown alongside the buildout: the company's hedge fund base rose to 369 funds in Q2 from 353 in Q1, with position value increasing to $97.10 billion from $77.61 billion, according to Insider Monkey's database. Alphabet saw an even larger jump, with holders rising to 275 from 265 and position value climbing to $93.74 billion from $72.41 billion.
Source: Insider Monkey
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