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According to Reuters, citing documents disclosed by the company on 2 November, the funds are intended for general corporate purposes. These include capital expenditure, debt repayment, acquisitions, dividend payments and share buy-backs.
Six bond issues maturing by 2046
The bond portion of the offering comprises six tranches maturing between 2029 and 2046. One tranche will have a floating interest rate, whilst the remaining five will have fixed rates.
The terms of the placement, including interest rates, bond prices and the number of shares on offer, had not yet been finalised at the time of publication by Reuters.
Further details of the bond issue are provided by MarketWatch. According to the publication, the plan envisages raising $10 billion through a share placement and a further $10 billion through the issue of debt instruments.
The company cites the need to fund the large-scale expansion of Oracle Cloud Infrastructure. The additional capacity is intended to ensure it can meet its commitments to major clients seeking computing resources for artificial intelligence applications.
Debt burden is becoming a focus for investors
The scale of the capital raise is raising questions about Oracle’s financial stability. According to Reuters, as at 31 August 2026, its total credit obligations and other borrowings stood at $125.34 billion. By way of comparison, the company’s revenue for the 2026 financial year reached $67.36 billion.
Thus, the volume of borrowings already significantly exceeds the corporation’s annual revenue. This does not necessarily imply solvency issues, but it does highlight the scale of financial obligations that must be taken into account when assessing the investment programme.
The market reacted to the news with a fall in share prices. During pre-market trading on Monday, Oracle shares lost around 4 per cent, continuing a decline which, by the end of the previous week, stood at approximately 33 per cent since the start of the year.
Investors are increasingly scrutinising the balance between expenditure on AI infrastructure, future revenues and the company’s ability to service its growing debt.
An additional risk factor remains Oracle’s significant dependence on OpenAI – the developer of ChatGPT, which has not yet turned a profit.
Oracle expects to more than triple its revenue
Despite the financial challenges, the company maintains highly ambitious growth plans. By the 2030 financial year, Oracle expects to more than triple its annual revenue to over $225 billion. Adjusted earnings per share, according to the company’s forecast, are set to exceed $21.
At the same time, Oracle’s management has previously stated that capital expenditure is set to peak in the current and next financial years. Last week, the company also pledged to limit additional funding for AI development to $20 billion by the 2030 financial year.
This announcement is intended to reassure investors concerned about the pace of debt accumulation and the scale of investment in data centres.
For Oracle, the current stage of development involves the need to tackle two challenges simultaneously: rapidly scaling up computing capacity to compete in the cloud services and artificial intelligence markets, whilst ensuring a financial return on invested capital.
This story was translated with the assistance of artificial intelligence.The translation was also reviewed by the Logos Press editorial team.
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