Amazon.com Inc. secured a $17.5 billion delayed-draw term loan from a group of banks led by Citibank as the company ramps up spending on artificial intelligence, data centers and related infrastructure. According to reports from CNBC TV18, the financing comes shortly after Amazon completed a record C$14 billion Canadian corporate bond sale and follows major AI-related investments, including commitments of up to $50 billion in OpenAI and $10 billion in Anthropic. The company disclosed the senior unsecured agreement in a June 10 filing with the Securities and Exchange Commission, with the cash available to the company through to the end of September, with every borrowing having three years from the date to repay the money.
The company's unsecured loan will pay 0.625 percentage point to 0.875 percentage point more than the Secured Overnight Financing Rate (SOFR), with the exact amount depending on Amazon's senior unsecured credit rating. As reported by CNBC TV18, other banks involved in the deal include JPMorgan Chase & Co., Bank of America Corp., HSBC Holdings Plc, and Wells Fargo & Co., with more than a dozen additional banks contributing to the financing. According to Amazon's SEC filing, bank commitments under the facility expire on September 30, with Amazon able to draw funds before that date unless it borrows the full amount earlier. Citibank N.A. serves as the administrative agent for the agreement, with the DDTL Credit Agreement including customary representations, warranties, covenants, and default events, though it does not contain financial covenants.
Amazon has committed to spending approximately $200 billion in capital expenditures in 2026, mainly on new data centers and chips that power AI applications. According to CNBC TV18, in February, OpenAI said Amazon was investing as much as $50 billion in cash in the AI company, initially committing $15 billion with the rest coming when OpenAI meets conditions such as going public. The company also invested $10 billion in Anthropic PBC this year and may inject an additional $15 billion over time. As reported by Bloomberg, an Amazon spokesperson confirmed that proceeds may support investments, fund capital expenditures, and repay debt, though the filing did not assign proceeds to any single project.
The loan comes as giant tech companies are borrowing heavily globally to invest in data centers, makers of AI models, and other AI assets. As reported by CNBC TV18, on Monday, Amazon sold C$14 billion ($10 billion) of Canadian dollar high-grade bonds, the largest corporate debt offering on record in the currency. Since March, the company has also sold bonds in euros, US dollars, and Swiss francs. As of March 31, Amazon had more than $225 billion of short- and long-term debt, including lease payments, according to data compiled by Bloomberg, compared to approximately $150 billion a year earlier. The Canadian dollar sale came before the loan disclosure, with Amazon not stating the loan replaces any specific bond sale.
