Amazon raises $3bn debt to fund Seattle headquarters purchase

US e-tailer Amazon.com has issued a bond offering of $3bn to help the acquisition of its South Lake Union headquarters in Seattle.

The company had no outstanding bonds and sold three of its debts bonds for – $750m, $1bn and $1.25bn.

The three-, five- and 10-year bonds were sold to yield 0.742%, 1.301% and 2.601% returns respectively, over comparable Treasury rates.

Amazon in October 2012 had announced a deal with Vulcan Real Estate to buy former’s leased, 11-building headquarters for $1.16b.

In its financial report for the quarter that ended on 30 September 2012, it showed $5.2bn in cash and short-term securities with no long-term debt.

The e-commerce company has last sold debt in 1999 that raised $1.25bn of 4.75%, 10-year convertible notes.

Amazon is also looking to is buy three blocks nearby Seattle for new corporate offices in a sale expected to close by 31 December 2012, besides plans to open warehouses to strengthen its distribution network.