"Safe Haven" in Turbulent Markets: Amazon's $53.4 Billion Bond Issuance Faces Overwhelming Demand

Caixin News, March 13 (Editor Zhao Hao) — This week, the bank responsible for selling Amazon’s corporate bonds sent a clear message to investors: in an increasingly unpredictable world, this company is a relatively safe investment.

On Tuesday, Amazon issued $37 billion in bonds across 11 maturities in the U.S., with subscription orders from asset managers reaching as high as $126 billion, nearing a record.

On Wednesday, the company also issued bonds for the first time in the euro market, totaling €14.5 billion (about $16.8 billion), setting a record for the largest corporate bond issuance in the euro market history.

John Servidea, co-head of investment-grade debt capital markets at J.P. Morgan, said Wall Street banks have been advising companies that this is a “window that may open and close quickly” in the current market environment.

Servidea pointed out that due to recent significant volatility in stock and bond markets, Amazon’s relatively high credit rating became a key selling point for these bonds. Additionally, Amazon’s profitability remains strong, with an estimated net profit of about $78 billion in 2025.

For over a week, Amazon has been considering issuing bonds, driven by its large investments in artificial intelligence. Last month, the company announced plans to invest approximately $200 billion by 2026 in data centers, chips, and other equipment, exceeding analysts’ expectations.

However, after the U.S. and Israel launched military strikes against Iran on February 28, Amazon’s financing plans became more complicated. The global corporate bond market nearly stalled in early March. A few days later, the market resumed operations, with issuance totaling about $51 billion.

This sales volume was enough to convince Amazon and its banking team that market demand remains solid. An Amazon spokesperson said, “We regularly evaluate our operational plans and make financing decisions accordingly — such as signing credit agreements or issuing bonds.”

Investors said they were attracted by Amazon’s high credit quality. Robert Tipp, chief investment strategist at PGIM Fixed Income, stated, “Within our foreseeable investment horizon, this is high-quality credit assets, and investors are also seeking yields.”

In Europe, Amazon initially planned to issue at least €10 billion in bonds, but strong demand led to an expansion to a record size. At the peak of orders, investors placed over €35 billion across eight maturities.

Marco Baldini, global head of investment-grade bond underwriting at Barclays, said, “This issuance became the largest transaction in euro corporate bond history, demonstrating the depth and liquidity of the euro market, and showing that it is gradually catching up to the dollar market.”

In a market environment characterized by fluctuating prices and risk premiums, companies with stable earnings tend to be more attractive.

Servidea from J.P. Morgan summarized, “In volatile markets, credit quality, transaction structure, and liquidity are especially important. Large, well-prepared issuances like Amazon’s are precisely the kind of deals that can stimulate investor demand.”

(Caixin News, Zhao Hao)