The Amazon company, whose debt failed to reach investment grade just 11 years ago, sold three-year maturity bonds with a 0.4 per cent interest. Electronic commerce and retail giant Amazon is taking advantage of market conditions to place $10 billion in bonds with different maturities, including 3, 7, 10 and even 30 and 40 years debt, for which some of the lowest financing costs ever recorded in US corporate debt markets have been secured.
According to knowledgeable sources consulted by the newspaper “Financial Times”, the company founded by Jeff Bezos, and whose debt just eleven years ago did not reach investment grade, would have sold three-year bonds with an interest rate of 0 on Monday. , 4%, just two tenths above the return required in May on US Treasuries with a comparable maturity. In fact, an interest rate of 0.4% represents a cost substantially lower than the 1.9% that Amazon had to offer in 2017 when it placed its three-year bonds to finance the acquisition of the Whole Foods Market supermarket chain and breaks down the previous minimum of 0.45% achieved in 2012 and 2013 by multinationals such as Apple, IBM and Walt Disney.
Likewise, the new Amazon bonds with maturities of 7 and 10 years have coupons of 1.2% and 1.5%, respectively, also the lowest in the US corporate bond market and beating the previous minimum established by the chain. distribution costco at the beginning of the year, according to Refinitiv data. On its side, the coupon of 0.8% of Amazon’s 5-year bond would have equaled the minimum of the equivalent debt issued by Pfizer. Amazon’s paper offering, which included maturities of 30 and 40 years, was oversubscribed more than three times, according to sources consulted by the newspaper.