AI debt sales by Alphabet Inc. (GOOGL) and Amazon.com Inc. (AMZN) are reshaping global corporate bond markets as Big Tech raises funds for data centres, Reuters reported.
Amazon raised EUR 14.5 billion, or about USD 16.88 billion, in March through an eight-part euro deal, according to LSEG data cited by Reuters. The deal was the largest ever in the euro corporate bond market.
Alphabet has also become a major borrower in euro, sterling, Swiss franc and yen corporate bond markets. Its yen, Canadian dollar, Swiss franc and sterling deals set borrowing records in those currencies, Reuters reported.
Bankers said hyperscalers are diversifying funding early as they prepare for large AI infrastructure spending. They also said foreign-currency debt can help hedge global assets and lower borrowing costs in some markets.
Giulio Baratta, co-head of investment-grade finance at BNP Paribas, said some of these companies could become among the world’s biggest issuers in any currency within 12 months.
Alphabet and Amazon have helped lift borrowing by non-financial US firms in Europe to more than EUR 60 billion, or about USD 69.85 billion, this year, Reuters reported.
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Morgan Stanley expects hyperscalers to borrow about EUR 50 billion in euro debt this year. Bank of America said non-dollar issuance has doubled to 30% of hyperscalers’ total bond funding.
JPMorgan global co-head of investment-grade finance, John Servidea, said that larger European markets now offer greater depth for capital raising than before.
