Oracle enters the market with its largest bond issue in a decade

US tech giant Oracle has announced plans to place up to $18 billion in corporate bonds. The move marks the company’s largest borrowing in recent years and comes alongside significant leadership changes.

Large-scale issue and its goals

The bonds will be placed in several tranches with maturities ranging from five to forty years. According to preliminary data, demand has already exceeded expectations: investors are actively bidding, showing confidence in Oracle’s stability.

The funds will be used not only to refinance existing liabilities but also to drive strategic projects. The main focus is on cloud services, where competition is intensifying, and on solutions tied to artificial intelligence. For Oracle, this is also a chance to strengthen its balance sheet, cut debt servicing costs, and signal to the market that it remains financially resilient over the long term.

Main priorities of the company

Analysts note that the new borrowing reflects Oracle’s ambitious strategy to expand its presence in the global technology market. The investments will be directed toward three key areas:

• expansion of the data center network to serve clients worldwide;
• integration of artificial intelligence solutions into Oracle Cloud products;
• building a sustainable foundation for growth amid competition with Amazon and Microsoft.

Each of these areas requires substantial capital. By tapping the debt market at the right moment, Oracle secures financing on favorable terms. The move gives the company not only fresh funds but also a platform for the next stage of development.

Leadership reshuffle

The financial move coincides with a shake-up in leadership. Safra Catz, who led Oracle for many years, is stepping down as CEO and moving to the board of directors. Her role will be taken over by two executives: Clay Magouyrk and Mike Sicilia.

The dual leadership model is expected to make the company more agile. Dividing responsibilities should speed up decision-making, sharpen the focus on core business areas, and ease the burden on a single executive.

For investors, the change signals that Oracle is preparing for an active phase of transformation. Leadership renewal, combined with large-scale fundraising, indicates a comprehensive approach to the company’s growth strategy.

Risks and investor expectations

Despite strong demand for Oracle’s bonds, analysts highlight several factors that could influence the success of its strategy. Among the main risks are:

• growth in debt burden and its impact on financial results;
• dependence on the dynamics of the global cloud market;
• the need to maintain high profitability levels;
• possible credit rating revisions if macroeconomic conditions shift.

These challenges could become a serious constraint if the company’s growth falls short of forecasts. Investors expect the management team to prove the efficiency of new investments within the next quarters — otherwise, confidence may weaken.

Experts generally view Oracle’s step as strategically sound. In today’s competitive environment and amid rapid AI development, it is vital not only to expand the client base but also to build a stronger infrastructure. The new debt issue helps tackle both objectives.

If the company delivers on its plans, Oracle will strengthen its position in cloud services and create a foundation for higher market value. However, to validate its ambitions, the company will need to show tangible results — from revenue growth to a greater market share in key regions.