In response to the huge spending on AI collaboration, Oracle Corporation (ORCL.US) plans to issue bonds for financing of $15 billion.

According to sources familiar with the matter, Oracle Corporation (ORCL.US) plans to raise $15 billion in the US investment-grade bond market on Wednesday. The source stated that the software giant's bond issuance this time 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 bonds is 1.65 percentage points higher than the yield on comparable US Treasury bonds. This bond issuance comes as Oracle Corporation is moving forward with large-scale cloud infrastructure partnership agreements with OpenAI and Meta (META.US), which are increasing the company's operating costs. It is predicted that in the next few years, Oracle Corporation will invest billions of dollars in data center leasing and power supply. As of now, Oracle Corporation 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 Corp, Citigroup, Deutsche Bank Aktiengesellschaft, Goldman Sachs Group, Inc., HSBC HOLDINGS, and JPMorgan Chase. It is reported that Oracle Corporation's last bond issuance was in January of this year.