Amazon took advantage of record low borrowing costs on Monday, raising more than $3bn in a bond offering to offset the costly effect of a massive investment drive.
It sold $750m of three-year notes at a rate of 0.65%, $1bn of five-year notes at a rate of 1.2% and a further $1.25bn of 10-year bonds at a rate of 2.5%.
Moody’s gave the bonds a ‘Baa1’ rating, saying that Amazon’s ‘good liquidity and strong balance sheet’ made it a solid investment. But last quarter, firm posted a loss, meaning the rating was not as high as it could have been.
It is spending massive amounts on pushing its Kindle tablet PC, building new warehouses and data centres, and is also in the process of building a posh new HQ in Seattle.