Oracle is preparing to place $ 15 billion of corporate bonds of various deadlines, to find the resources necessary to finance his expansion plans and possibly carry out some interesting acquisition. The US technological big technological, according to what was anticipated by Bloomberg, will announce the placement of investment grade bonds today.
The details of the issue
The company active in the cloud infrastructure sector should place seven tranches of bonds on the market, for a total of 15 billion dollars, including a very rare title at 40 years of age, have reported sources close to the matter, indicating that the price should offer a spread of 1.65% more than the titles of the Treasury of the same deadline. Oracle’s last placement dates back to last January. The placement consortium includes banks of the caliber of Bank of America, Citigroup, Deutsche Bank, Goldman Sachs, HSBC Holdings, JP Morgan.
The use of the resources collected
The proceeds can be used for capital expenses, investments or future acquisitions, or for other general corporate purposes, including refund of debt. But it should be remembered that the issue arrives in the wake of a series of important agreements signed by Oracle to provide cloud infrastructures in Openi and Meta Platforms for the development of artificial intelligence. The resources will therefore be able to financial the higher expenses that the company will face for the adaptation of infrastructures, since it will be expected to spend hundreds of billions of dollars in the coming years for the rental and feeding of data center. Then there is the possibility of new acquisitions, such as that of Tiktok USA, in which the company founded by Larry Ellison is also involved, whose name has been made directly by Trump.
The agreements with Meta and Openai
Oracle has signed an agreement with Openai for the supply of about 300 billion dollars in calculation power in the next 5 years. It is one of the greatest contracts ever signed for data centers, confirming that the expenditure for artificial intelligence has literally exploded. The investment is part of the Stargate project by President Trump, which provides for investments for a total of 500 billion dollars in infrastructure for artificial intelligence in the next 4 years.
The contract with Openai is not the only one signed by Oracle, the company is in fact in negotiations with a destination for a multi -year agreement worth about 20 billion dollars in the cloud computing. The company would provide the Big Yes Social Network with the calculation capacity necessary for the training and distribution of artificial intelligence models, joining other cloud computing suppliers already used by Meta.
Oracle announces a more solid governance
Oracle is not investing only in infrastructure, but is also equipped with a more complex governance, a choice that does not completely convince in view of the demanding period that awaits it and the risk that a double guide can slow down the decision -making process. The company, which has also become a giant of the stock market, has announced a structure with two CEO, appointing Clay Magouyrk and Michael Sicily. Oracle had already had a structure with two CEO in the past, when Safra Catz had shared the guide with Mark Hurd. But in those years the title had submitted the Tech sector.
