Amazon More Than Doubles Credit Line as It Expands Globally

Amazon is more than doubling its line of credit to $7 billion as it takes steps to fuel revenue growth, including building data centers, expanding internationally and producing original video content, according to Bloomberg.

The line of credit, which was previously $3 billion, is led by Bank of America and HSBC. Amazon opened the credit line in 2016. The new terms extend the agreement until April 27, 2021.

The new agreement is a sign of how Amazon is positioning itself for more spending even after it said it will boost the yearly price of Prime memberships 20 percent to $119. That will generate an additional $1.5 billion or so in annual revenue. The company has been making big investments in India and the U.S., where it’s engaged in a price war with Walmart as it seeks to sell more groceries and household goods.

The company last week posted higher profit in the first quarter, helped by revenue that rose 43 percent from the same period last year. Amazon forecast more growth ahead, which helped drive shares 3.6 percent higher on Friday.