Expert Chaslau Koniukh
  • Companies
  • Global investment
  • Investors
  • Terminology
  • Economy
  • Stock Market
  • World exchanges
  • Tech and Marketing
Amazon corporation-2
Stock Market

The Amazon Corporation raised $18.5 billion in the debt market

03.01.2022
2 min read

The Amazon Corporation issued bonds with terms from 2 to 40 years

Amazon Corporation has placed 8 bond issues on the debt market, which allowed it to receive 18.5 billion dollars. The securities have different maturities – from 2 to 40 years.
Initially representatives of the retailer were planning to get $15 billion for bonds, but there was a high demand for the securities at the market, which allowed increasing the amount. The volume of issued bonds was the largest in the history of Amazon and ranked second among placements in the U.S. this year. The first place belongs to telecommunications holding company Verizon Communication, which raised 25 billion dollars in the debt market.
Prior to that, Amazon placed its securities in the summer of 2020, then managed to get 10 billion dollars. These funds were used to implement corporate plans and optimize internal processes. In 2017, the corporation raised $16 billion, thanks to which the retailer acquired Whole Foods Market.
In this case, the company for the first time for itself released on the market sustainable bonds for 2 years, their volume amounted to 1 billion. The proceeds from the securities of this type will go to projects related to the environment and social initiatives. Amazon wants to invest in renewable energy facilities, invest in affordable housing. In addition, the corporation will finance an educational program aimed at minorities. Also, a share of the capital will go to refinance existing debts and purchase its own stock. The retailer’s management approved the buyback process back in 2016, allocating $5 billion for it. However, no securities have been purchased since then.As far as yields are concerned, the corporation’s 2-year bonds have a minimal difference from the U.S. Treasury bond rate. The yield on Amazon securities is 0.25%, which is 0.1 p.p. higher than what 2-year Treasury bonds offer. It should be noted that no other U.S. company has managed to achieve such a result.
The additional bond yield, which is compared with the rate of Treasury bonds or spread, characterizes the level of risk that investors lay down for business lending. At the same time, experts compare investments in this company with investments in U.S. government debt securities, which are considered risk-free.
Amazon owns the record spread with the lowest value in relation to corporate bonds for a period of 20 years. The previous lowest value was observed for Alphabet Corporation.
During the pandemic, Amazon significantly increased its earnings, and its stock continues to appreciate in the market, becoming increasingly attractive to investors.

Tags: Stock Market
0
Previous Post Japan's economy showed a slowdown in recovery Next Post FINAM Analyst: how the Russian currency market reacts to the transition to the euro

You Might Also Like

Daniel Kretinsky
Stock Market
Daniel Kretinsky becomes a major shareholder in retailer Fnac Darty
14.07.2023
issue of green bonds
Stock Market
Moscow city government started to issue green bonds
24.11.2021
Bumble app
Stock Market
The Bumble app plans to go IPO: more details
15.10.2021
Russian money market development
Stock Market
What factors influence the development of the Russian money market
22.07.2020
Meta corporate bonds
Stock Market
Corporate bonds bring in US$8.5 billion for Meta
13.08.2023
Developer Samolet
Stock Market
Developer Samolet placed its shares at Moscow Stock Exchange
17.07.2021

Recent Posts

  • 1Forex drawdown
    Forex drawdown and why you shouldn’t be afraid of it
    22.09.2023
  • 2investment in Turkey's steel industry
    Yıldız increases investment in the Turkish steel industry
    20.09.2023
  • 3Abu Dhabi Exchange
    The Abu Dhabi Exchange has created ideal conditions for the IPO of an Adnoc unit
    18.09.2023
  • 4mobile marketing
    How mobile marketing helps to retain existing customers and attract new ones
    16.09.2023
  • 5E-commerce company Rakuten
    Japan’s Rakuten intends to raise funds by issuing shares
    14.09.2023

Popular Posts

  • Skolkovo analysts: the Russian energy market is suffering losses
  • Analysts: Egypt’s economy to continue falling in 2023
  • Businessman Chuck Feeney: the man who gave the world Duty Free
  • Field of activity of the American Monsanto Company Corporation

Social media

Editor's Picks

Chaslau Koniukh
Analytics

American bankers from JPMorgan and Goldman Sachs advise to invest in gold: review by Chaslau Koniukh.

Press Secretary
17.08.2020
Expert Chaslau Koniukh
Analytics

Chaslau Koniukh on the analysts’ opinion on the key stake size change soon

Press Secretary
18.06.2020
expert Chaslau Koniukh
Analytics

Chaslau Koniukh: Internet trade market in Russia may reach 2.78 trillion rubles.

Press Secretary
30.05.2020
Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh
Analytics

Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh

Press Secretary
16.05.2020

Latest Posts

Forex drawdown
Forex drawdown and why you shouldn’t be afraid of it
22.09.2023
investment in Turkey's steel industry
Yıldız increases investment in the Turkish steel industry
20.09.2023
Abu Dhabi Exchange
The Abu Dhabi Exchange has created ideal conditions for the IPO of an Adnoc unit
18.09.2023

Chaslau Koniukh

Expert Chaslau Koniukh

Chaslau Koniukh – an expert in marketing and project management, IT consulting, international investments, investor, financial analyst. A commodity trader, private consultant, entrepreneur, lecturer, author of several articles on the stock market.

Popular Posts

  • Skolkovo analysts: the Russian energy market is suffering losses
  • Analysts: Egypt’s economy to continue falling in 2023
  • Businessman Chuck Feeney: the man who gave the world Duty Free
  • Field of activity of the American Monsanto Company Corporation
  • PitchBook: venture capital investment in AI could grow 3-4 times in 2023
Expert Chaslau Koniukh
  • Facebook
  • Twitter
  • Instagram
  • Biography

Chaslau Koniukh – an expert in marketing and project management, international investments, financial analyst.

Social media

Menu

  • Biography
  • Companies and corporations
  • Global investment
  • Investors and Entrepreneurs
  • Economy
  • Market terminology
  • Stock Market
  • World exchanges
  • Tech and Marketing
  • Analytics