Amazon.com Inc secured a $17.5 billion delayed-draw term loan with a group of banks including Citigroup, JPMorgan Chase, Wells Fargo, HSBC, and Bank of America on June 10, 2026 [1, 2, 3]. The funds from the loan will be available through September 30, 2026, with each draw carrying a three-year repayment term from the date of borrowing [1, 3]. Interest on the loan is set at the Secured Overnight Financing Rate (SOFR) plus between 0.625 and 0.875 percentage points, depending on Amazon's senior unsecured credit rating [1, 3].
Amazon said in a statement the loan's proceeds would be used for "general corporate purposes, which may include supporting business investments, funding future capital expenditures, and repaying debt" [1]. The loan is part of Amazon’s push to bolster its AI and infrastructure investments alongside a sizable capital expenditure plan. The company’s 2026 capital expenditure budget stands near $200 billion, with a focus on data centers and AI chips [1].
This loan follows Amazon’s record-setting Canadian dollar corporate bond sale announced two days earlier on June 9, when it raised approximately C$14 billion ($10.5 billion) in debt, the largest ever denominated in Canadian currency [1, 2]. So far in 2026, Amazon has raised over $80 billion in external financing to accelerate AI-related infrastructure and spending [3].
The loan agreement includes a broad syndicate of lenders, reflecting strong market support for Amazon’s capital strategy in the face of rising debt levels. Amazon’s approach combines long-term debt with large-scale bond issuance to fund its aggressive technology investments.
The upcoming deadline for drawing funds under the new $17.5 billion term loan is September 30, 2026, which sets the timeline for the company’s immediate financing needs on its AI and capital expenditure initiatives [1, 3].
