Amazon has arranged a $17.5 billion delayed draw term loan with Citibank and several other financial institutions. The retail giant disclosed this senior unsecured agreement in a filing with the Securities and Exchange Commission dated June 10. This financing significantly boosts Amazon’s borrowing capacity for various corporate needs, capital spending, and debt reduction.
The loan commitments under this facility remain available until September 30, after which they expire. Amazon has until that date to access the funds unless it borrows the entire amount earlier. Once drawn, the loan matures three years from the borrowing date. Citibank N.A. acts as the administrative agent for this agreement.
In its SEC filing, Amazon described the borrowing purpose broadly as supporting general corporate purposes. The company stated that funds might be used for investments, capital expenditures, and repaying existing debts. While the filing did not allocate proceeds to any specific project, the flexible structure allows Amazon to access capital as business opportunities develop.
According to a report from Bloomberg, this loan is closely tied to Amazon’s expanding artificial intelligence investments. The tech behemoth has outlined plans to spend roughly $200 billion on AI infrastructure and other capital projects this year. That figure includes substantial investments in AI companies such as Anthropic and OpenAI. Amazon has already committed $10 billion to Anthropic, with a possible additional $15 billion on the horizon. The company also continues to pour money into cloud computing, data centers, and computing capacity.
The recent loan comes on the heels of Amazon selling 14 billion Canadian dollars in high-grade bonds on June 8, worth about $10 billion. Since March, the company has also issued bonds in euros, U.S. dollars, and Swiss francs. The new loan does not appear to replace any specific bond sale, and Amazon has not yet drawn against the facility.
The DDTL Credit Agreement includes standard representations, warranties, covenants, and default events but notably lacks financial covenants. If a default occurs, Amazon would have grace periods to rectify the issue. Unresolved defaults could accelerate the repayment of unpaid amounts and allow lenders to terminate commitments. The financial institutions involved offer a range of services, including commercial banking, investment banking, trading, and advisory services.