Amazon secures $8 billion loan

Amazon has agreed to an $8 billion loan agreement with lenders, the ecommerce and technology giant has announced.

The company said that the funds will be used for general corporate purposes. The unsecured term loan will mature in 364 days with the option to extend for another 364 days.

Amazon said that DBS Bank and Mizuho Bank were among the lenders, with Toronto Dominion serving as the administrative agent for the loan agreement.

At the end of the third quarter of 2022, Amazon had around $35 billion in cash and cash equivalents and long-term debt of around $59 billion.

In a statement provided to Reuters, Amazon said: "Given the uncertain macroeconomic environment, over the last few months we have used different financing options to support capital expenditures, debt repayments, acquisitions, and working capital needs."

The announcement comes following a period of volatility for Amazon. In October 2022, Amazon’s market cap dropped by over $200 billion when it adjusted its sales targets for the festive period in light of increasing inflation.

Amazon is also one of the multiple Big Tech firms that is undergoing job cuts, with the company set to reduce its workforce by about 10,000 in early 2023.

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