U.S. software corporations Oracle issued $18 billion (about 25 trillion won) in corporate bonds.
On the 24th (local time), major foreign media including Bloomberg reported that Oracle issued six types of bonds, including a 40-year maturity, to raise $18 billion. Bloomberg said the size of the issuance is the second largest among U.S. corporations' investment-grade corporate bond offerings so far this year.
The coupon on the 40-year notes was set at 1.37 percentage points above comparable-maturity U.S. Government Bonds. Investor demand for the bonds was said to have approached $88 billion.
Oracle plans to use the funds secured this time to increase investment in cloud infrastructure. On the 10th, Oracle signed a contract with OpenAI to provide about $300 billion (about 416 trillion won) in cloud infrastructure over the next five years. Early this year, it announced the "Stargate" project with OpenAI and Japan's SoftBank Group to invest $500 billion over the next four years to build large-scale data centers in the United States.
Bloomberg said that although Oracle has long been considered years behind the top three players in the cloud infrastructure market—Amazon Web Services (AWS), Microsoft (MS), and Google—it recently won large contracts, increasing its expense burden and prompting it to issue bonds. However, Oracle's cash flow turned negative this year for the first time since 1992, putting it under significant financial strain.