Oracle sold US$18 billion in US investment-grade bonds on September 24, marking the second-largest such deal this year.

Demand for the debt reached nearly US$88 billion, according to a source.

The software company issued the bonds in six parts, including a rare 40-year tranche that will yield 1.37 percentage points above comparable US Treasuries.

Oracle dropped a floating-rate tranche during syndication.

The company is increasing spending to fulfill large cloud infrastructure commitments with customers such as OpenAI and Meta.

Analysts expect Oracle will need to issue around US$65 billion in debt by 2028 to fund its growth, based on estimates from research firm CreditSights.

🔗 Source: Bloomberg

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