Oracle starts US$10 billion bond sale as it pursues share offering
The company is also seeking US$10 billion through equity as it funds an expansion of data centers serving AI customers.
Oracle is seeking US$10 billion from investment-grade bonds and another US$10 billion from shares, a filing with the US Securities and Exchange Commission shows. Marketing has begun for the bonds, and each transaction can proceed independently.
The fundraising follows an announcement at Oracle’s 28 October investor day in Las Vegas that it would seek up to US$20 billion through fiscal 2030. Debt and equity would each account for half, with refinancing excluded from the limit. Chief financial officer Hilary Maxson said that amount would finish funding the remaining cycle.
Oracle said the money is intended to support its data center expansion for AI customers such as OpenAI. The company listed several possible uses for the proceeds, including capital spending, acquisitions, debt repayments, dividends and stock repurchases.
Six portions make up the bond offering: floating-rate debt due in 2029 and fixed-rate debt due in 2029, 2031, 2033, 2037 and 2046. Rates and individual amounts were not disclosed in the preliminary filing. BofA Securities leads the transaction; other participating banks include Citigroup, Deutsche Bank, Wells Fargo and JPMorgan.
Oracle’s spending on data centers totaled US$55.7 billion for the year that ended in May 2026. It forecasts a decline in that spending in fiscal 2029 and positive free cash flow in fiscal 2028’s second half.
The filing put Oracle’s liabilities at around US$236.1 billion on 31 August, with senior unsecured borrowings accounting for US$125.3 billion. A previous equity sale, completed between June and August, raised US$20 billion.
