Investors placed $28 billion in orders for the $14 billion deal
Amazon's record Canadian-dollar bond sale with $28bn in orders, double the $14bn the company ultimately raised.
A source who was not authorized to disclose confidential transaction details told The Globe and Mail about the demand.
That $14bn issuance is the largest corporate bond ever raised in Canadian dollars, according to Bloomberg, eclipsing the $8.5bn record Alphabet set just last month.
Amazon filed the final pricing term sheet with the Securities and Exchange Commission on Monday, Reuters said.
The notes are maple bonds, Canadian-dollar bonds that foreign borrowers issue into the Canadian market.
Global companies have moved into that market this year, drawn by strong investor appetite and cheaper borrowing costs.
For yield-focused buyers, the five-part deal spans maturities from 2029 to 2056.
The Globe and Mail reported that the 30-year portion is the largest at $4.75bn and carries the highest yield, expected at 1.1 percent above government bond yields, with the other tranches expected to yield between 0.4 percent and 0.8 percent above government yields.
Corporate bonds generally pay more than government bonds because investors treat them as higher risk.
The sheer size reshaped the market.
Bloomberg reported fund managers sold high-quality bonds, including longer-dated utilities securities and Alphabet notes, to make room for the deal, said Dhruv Mallick, head of credit at Leith Wheeler Investment Counsel Ltd.
Investment-grade Canadian corporate bond spreads widened by about two basis points on Tuesday, a mild move that suggests the market is absorbing the deal well.
At 84.5 basis points above the government curve, those spreads remain more than 30 percent tighter than the five-year average.
The deal also sapped buying capacity for upcoming offerings.
"Each deal will feel a bit heavier for the next month," Chris Whelan, head of tactical trading strategy of fixed income at TD Securities, told Bloomberg, adding that borrowers will likely hold off on big sales for "a good while."
Etienne Bordeleau, portfolio manager at Ninepoint Partners LP, said it was "no surprise" that Amazon's $4.75bn 30-year portion would "distort the Canadian bond market," given that the government typically auctions 30-year bonds in $3bn tranches.
He pointed to Canada's long-dated sovereign bonds "massively" underperforming comparable Treasuries on Monday.
Strong inflows into Canadian fixed income support those narrow margins and fund ever-larger deals, Randall Malcolm of SLC Management told Bloomberg.
The trend has pushed more global issuers to consider Canadian dollars as a funding source, he said.
Bordeleau was blunter: "Canada is open for business."
The Amazon sale sits within a broader hyperscaler borrowing wave.
Reuters reported that large technology companies are issuing debt outside the United States to diversify funding as they finance trillions of dollars of AI infrastructure, especially data centres.
Bloomberg reported that these firms have tapped every corner of the credit market and broadened their investor base through currencies such as the loonie and the euro.
Amazon itself raised US$16.88bn in March from an eight-part deal, the largest in the euro corporate bond market, according to Reuters.
The maple market was already booming before the hyperscalers arrived, The Globe and Mail reported, driven by a technical change in early 2025 that added newly issued maples to the FTSE Canada Universe Bond Index and opened them to index-tracking funds.
The Amazon offering pushes the 2026 maple total to at least $33.8bn, already nearly one-third of last year's entire domestic corporate bond market with the year not yet half over.
