To cope with the huge expenses of AI cooperation, Oracle plans to issue bonds to raise $15 billion
According to informed sources, Oracle plans to raise $15 billion in the U.S. investment-grade bond market on Wednesday. The source indicated that the software giant's bond issuance will be divided into up to seven parts, including a rare 40-year bond. It is reported that the initial pricing discussion range for this bond is 1.65 percentage points higher than the yield on U.S. Treasury bonds of the same maturity. This bond issuance comes as Oracle is advancing large-scale cloud infrastructure cooperation agreements with OpenAI and Meta, which are driving up the company's operating costs. It is predicted that Oracle will invest hundreds of billions of dollars in data center leasing and power supply over the next few years. So far, Oracle has not responded to requests for comment. According to the plan, the funds raised from this bond issuance will be used for capital expenditures, future investments or acquisitions, and other general corporate purposes (including debt repayment). The lead underwriters for this bond issuance include Bank of America, Citigroup, Deutsche Bank, Goldman Sachs, HSBC Holdings, and JP Morgan. It is reported that Oracle's last bond issuance was in January of this year
According to informed sources, Oracle (ORCL.US) plans to raise $15 billion in the U.S. investment-grade bond market on Wednesday.
The informed source stated that the software giant's bond issuance will be divided into up to seven parts, including a rare 40-year bond. It is reported that the initial pricing discussion range for this portion of the bond is 1.65 percentage points higher than the yield on U.S. Treasury bonds of the same maturity.
This bond issuance comes as Oracle is advancing large-scale cloud infrastructure cooperation agreements with OpenAI and Meta (META.US), which are driving up the company's operating costs. It is predicted that Oracle will invest hundreds of billions of dollars in data center leasing and power supply over the next few years.
So far, Oracle has not responded to requests for comments. According to the plan, the funds raised from this bond issuance will be used for capital expenditures, future investments or acquisitions, and other general corporate purposes (including debt repayment).
The lead underwriters for this bond issuance include Bank of America, Citigroup, Deutsche Bank, Goldman Sachs, HSBC Holdings, and JP Morgan. It is reported that Oracle's last bond issuance was in January of this year
