Oracle Issues $18 Billion in Bonds to Invest in Cloud Infrastructure

"Bond Purchase Demand Reaches 88 Billion Dollars"

On September 24 (local time), Bloomberg News reported that American software company Oracle had issued bonds worth 18 billion dollars to invest in its cloud infrastructure division.

Reuters Yonhap News

According to Bloomberg, this bond issuance is the second largest investment-grade corporate bond offering by a U.S. company so far this year. The bonds issued this time come in six different maturities, including a 40-year bond. The yield on the 40-year bond is 1.37 percentage points higher than that of U.S. Treasury bonds with a similar maturity. Sources said that demand for the bonds reached 88 billion dollars.

This large-scale bond issuance by Oracle comes as the company has secured major cloud infrastructure contracts with clients such as OpenAI and Meta Platforms. Earlier, on September 10, Oracle signed a contract to provide OpenAI with cloud infrastructure worth approximately 300 billion dollars over the next five years.

Additionally, OpenAI, Oracle, and SoftBank Group previously announced the "Stargate" project, which involves investing 500 billion dollars over the next four years to build large-scale data centers in the United States. OpenAI stated that, as of the previous day, one building at the Stargate’s first site, the Abilene data center in Texas, had begun operations, while the remaining seven buildings are nearing completion. Additional data center complexes are under construction in two other locations in Texas, one in New Mexico, one in Ohio, and one in an as-yet-undisclosed region in the Midwest.

Bloomberg reported that Oracle, which had lagged behind the top three companies in the cloud infrastructure market-Amazon Web Services, Microsoft, and Google-for years, has taken on increased financial burdens as it enters into full-scale cloud contracts, prompting this bond issuance. In the first quarter of fiscal year 2026 (June to August), Oracle posted 14.9 billion dollars in revenue, up 12% from the same period last year. Of this, revenue from the cloud infrastructure division surged 55% to 3.35 billion dollars. In its earnings report, Oracle stated that its remaining performance obligations (RPO) in the cloud infrastructure division-contracted revenue not yet fulfilled-stood at 455 billion dollars, a 359% increase compared to the same period last year.

Furthermore, on September 22, Oracle appointed Clay Magouyrk and Mike Sicilia as new co-Chief Executive Officers (CEOs), a leadership change that is also seen as reflecting the growing importance of the cloud infrastructure division.

This content was produced with the assistance of AI translation services.