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Amazon Inks $17.5 Billion Loan in Financing Led by Citigroup
Tech Companies Are Borrowing Heavily to Expand AI Infrastructure Buildout
Key Takeaways:
- Amazon secured a $17.5 billion delayed draw term loan led by Citigroup, disclosed in a regulatory filing on June 10.
- The financing underscores heavy borrowing by major tech firms to fund AI expansion, with interest tied to SOFR plus up to 0.875 percentage point.
- Amazon can access the loan through September and must repay each draw within three years, with multiple major banks participating in the facility.
Amazon.com Inc. has inked a $17.5 billion loan from a group of banks led by Citigroup Inc., the tech company said in a regulatory filing.
The lenders have agreed to make the delayed draw term loan available until the end of September, according to the filing on June 10.
Every time the company borrows money under this facility, it has three years from the date of the borrowing to repay it.
The loan will pay 0.625 percentage point to 0.875 percentage point more than the Secured Overnight Financing Rate, or SOFR, with the exact amount depending on Amazon’s credit rating.
Other banks involved in the deal include JPMorgan Chase & Co., Bank of America Corp., HSBC, and Wells Fargo & Co. More than a dozen additional banks contributed to the financing.
The loan comes as giant tech companies are borrowing heavily to expand the artificial intelligence infrastructure buildout, with Amazon recently also issuing in foreign markets to tap other pools of capital.
Amazon ranks No. 1 on the Transport Topics Top 100 list of the largest logistics companies in North America, No. 15 on the TT Top 100 list of the largest private carriers and No. 1 on the TT Top 50 list of the largest global freight companies.
