By Oracle Corp. is turning to the US investment-grade bond market to raise $15 billion, its largest debt sale since January.
The financing is split into as many as seven parts, including a rare 40-year bond, said a Bloomberg report.
The offering comes as the software company faces surging infrastructure costs tied to its multiyear cloud services deals with OpenAI and Meta Platforms Inc.
Proceeds from the sale are expected to fund capital expenditure, investments, acquisitions, and potential debt repayment.
Cloud demand drives financing push
According to Bloomberg, the decision to issue bonds follows Oracle’s commitments to provide cloud computing infrastructure to some of the largest technology companies.
The partnerships with OpenAI and Meta are expected to require hundreds of billions of dollars in spending over the coming years, particularly on data centres and power supply.
These long-term contracts have significantly increased the company’s expenditure profile, prompting the need for fresh financing.
Structure of the debt offering
The bond sale is being launched in multiple tranches, with maturities ranging up to 40 years.
Initial price discussions for the longest-dated portion suggest a yield spread of about 1.65 percentage points above comparable US Treasuries.
Such long-dated issuance remains uncommon in corporate finance, signalling Oracle’s intention to lock in long-term capital for its expansion.
The financing comes after the company last tapped debt markets in January.
Banks leading the transaction
The offering is being arranged by Bank of America Corp., Citigroup Inc., Deutsche Bank AG, Goldman Sachs Group Inc., HSBC Holdings Plc, and JPMorgan Chase & Co.
These major underwriters are coordinating the sale across global investors seeking stable returns in investment-grade corporate debt.
The deal is one of the largest in recent weeks, reflecting continued appetite in the bond market despite elevated yields.
Allocation of proceeds
According to the report, Oracle plans to use the proceeds to cover several priorities, including investment in data infrastructure, acquisitions, and repayment of existing borrowings.
The funds will also provide flexibility for future projects as the company expands its cloud footprint globally.
The debt strategy highlights how Oracle is aligning its financing with the demands of the fast-growing artificial intelligence sector, where data processing power and storage capacity are becoming decisive factors.
Industry analysts note that with competition intensifying in cloud services, the ability to secure long-term capital is critical for maintaining market share.
Oracle’s focus on balancing debt repayment with fresh investment suggests a cautious yet ambitious approach to sustaining its growth path.
With this bond sale, the company is positioning itself to manage rising operational costs while supporting some of the most resource-intensive contracts in the tech industry.
The rare 40-year tranche also indicates Oracle’s willingness to commit to ultra-long-term borrowing, a step that places it among a select group of global corporations prepared to secure funding horizons stretching across multiple decades.
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