Amazon secured a US$17.5 billion delayed-draw term loan from banks including Citigroup, a filing on June 10 showed.

The financing expands Amazon’s funding pool as spending on AI rises.

The unsecured facility is available until the end of September. It carries interest of 0.625 to 0.875 percentage point over the Secured Overnight Financing Rate (SOFR), depending on Amazon’s senior unsecured credit rating. Each borrowing must be repaid within three years of the draw date.

A delayed-draw term loan lets a borrower lock in financing now and draw later.

Borrowers typically paying interest only on the amount used. That structure can suit phased spending such as data center buildouts.

Moody’s recently affirmed Amazon’s senior unsecured rating at A1 and revised its outlook to stable from positive.

The ratings agency said Amazon plans to increase capital spending by more than 50% to about US$200 billion.

The spending will support infrastructure for Amazon Web Services (AWS) and AI demand, a pace it expects will require external funding.

The financing follows Amazon’s C$14 billion (US$10 billion) bond sale in Canada on June 8.

🔗 Source: Bloomberg

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