Oracle Raises $20 Billion in Stock and Bonds for AI and Cloud Build-Out

Oracle is raising $20 billion, split between $10 billion of common stock and $10 billion of senior notes, according to preliminary prospectus supplements filed with the SEC on 2 November. The notes come in six tranches maturing between 2029 and 2046, one floating rate and five fixed rate; prices, rates and the number of shares have not been set.

Oracle says the proceeds will go to general corporate purposes, which may include capital expenditures, repayment of debt, investments or acquisitions, and dividends or share buybacks. The filings also say customer demand will require continued growth in capital spending to expand existing data center capacity and add data centers in new locations.

The raise matches a cap Oracle set at its 28 October investor day, when it committed to limit additional capital raises through fiscal 2030 to $20 billion, split evenly between equity and debt, Forbes Middle East reported. Oracle had $125.3 billion in senior unsecured borrowings at the end of August, and its shares fell 6.6% on Monday after losing about 33% this year through Friday, according to the same report.