Amazon raised £4.25 billion ($5.76 billion) through its first-ever sterling bond issuance on Wednesday, slightly surpassing initial expectations, according to a bank involved in managing the transaction. The offering marks a notable step for the company as it expands its funding strategy amid growing capital demands driven by the artificial intelligence (AI) sector.

The bond sale included four tranches: a three-year bond raising £1.25 billion, alongside six-, 12-, and 19-year bonds, each raising £1 billion. According to one of the lead managers, the total demand for the deal exceeded £10.65 billion, reflecting strong investor appetite.

This issuance is part of a broader trend in which hyperscale companies, heavily invested in cloud infrastructure and AI development, are diversifying their debt portfolios by tapping into international capital markets. In addition to sterling-denominated bonds, these companies have issued debt in euros, Swiss francs, and Japanese yen over the course of the year.

Data from London Stock Exchange Group (LSEG) show that such companies have collectively issued more than $200 billion in debt during 2024, a figure that already doubles the total from the entirety of 2023. This surge underscores the substantial financing requirements to support rapid expansion and innovation in the technology sector.

Amazon’s move into the British pound market represents a strategic effort to broaden its borrowing base and potentially benefit from lower borrowing costs or more favorable terms compared to U.S. dollar markets. The bond sale’s success highlights investor confidence in the company’s creditworthiness and its growth prospects amid the competitive landscape of AI-driven technology companies.