Oracle Corporation Completes $18 Billion Bond Offering

Oracle Corporation has issued $18 billion in aggregate principal amount of notes with varying interest rates and maturity dates, ranging from 2030 to 2065. The notes were issued under an indenture and an underwriting agreement with several banks. The issuance was consummated on September 26, 2025.

Oracle Corporation has issued $18 billion in aggregate principal amount of notes with varying interest rates and maturity dates, ranging from 2030 to 2065. The notes were issued under an indenture and an underwriting agreement with several banks. The issuance was consummated on September 26, 2025.

The technology giant, which has nearly doubled in value this year, sold the bonds in six parts, including a rare 40-year bond. The 40-year note yielded 1.37 percentage points above similarly dated Treasuries, compared to initial price talk of about 1.65 percentage points. A floating-rate tranche was dropped during syndication Oracle Raises $18 Billion in Second-Biggest Bond Sale This Year^[1].

The bond sale comes as Oracle ramps up its spending to meet the needs of the artificial intelligence (AI) boom. The company is fulfilling massive cloud infrastructure deals with customers like OpenAI and Meta Platforms Inc., which are boosting its expenses. Over the next several years, Oracle is projected to spend hundreds of billions of dollars to rent and power data centers Oracle Raises $18 Billion in Second-Biggest Bond Sale This Year^[1].

Oracle's cloud infrastructure market position has improved significantly, with the company now on the hook for upfront costs after securing major cloud deals. This has led to a cash flow flip to negative for the first time since 1992. Analysts anticipate the metric will be in free fall over the coming years before returning to positive in 2029 Oracle Raises $18 Billion in Second-Biggest Bond Sale This Year^[1].

The bond sale is part of a broader trend in the U.S. high-grade bond market, with companies taking advantage of falling yields and historically tight risk premiums. Through Wednesday, companies had sold more than $190 billion of debt, the most since February of last year Demand for investment-grade bond ETFs surges as Oracle pushes up supply of new debt^[2].

Investors have also shown increased interest in investment-grade bond ETFs, with net inflows of $1.6 billion in the week through Wednesday, a four-week high. This surge in demand is supported by a historically elevated supply of new investment-grade corporate debt, with Oracle's $18 billion issuance contributing significantly to this trend Demand for investment-grade bond ETFs surges as Oracle pushes up supply of new debt^[2].

The bond sale highlights Oracle's commitment to expanding its cloud and AI infrastructure, despite concerns about overestimated cloud growth and unrealistic revenue goals expressed by some analysts. The company's stock fell over 5% on September 26 after analyst Alex Haissl set a $175 price target, citing these concerns Key facts: Oracle's stock fell over 5% on September 26 after analyst Alex Haissl set a $175 price target, citing concerns about overestimated cloud growth and unrealistic revenue goals.^[3].

References
Oracle Raises $18 Billion in Second-Biggest Bond Sale This Year^[1] https://finance.yahoo.com/news/oracle-looks-raise-15-billion-131941293.html
Demand for investment-grade bond ETFs surges as Oracle pushes up supply of new debt^[2] https://www.marketwatch.com/story/demand-for-investment-grade-bond-etfs-surges-as-oracle-pushes-up-supply-of-new-debt-f6ff4d0c
Key facts: Oracle's stock fell over 5% on September 26 after analyst Alex Haissl set a $175 price target, citing concerns about overestimated cloud growth and unrealistic revenue goals.^[3] https://www.tradingview.com/news/tradingview:f83ae13d38ae8:0-key-facts-oracle-s-stock-fell-over-5-on-september-26-after-analyst-alex-haissl-set-a-175-price-target-citing-concerns-about-overestimated-cloud-growth-and-unrealistic-revenue-goals/