Oracle filed plans Monday to raise $20 billion through a combination of new shares and debt as it continues expanding its artificial intelligence infrastructure.
According to filings with the U.S. Securities and Exchange Commission, the company intends to sell $10 billion in common stock and $10 billion in senior notes. Oracle said the funds could be used for general corporate purposes, including capital expenditures, debt repayments and future investments.
The fundraising had already been outlined during Oracle’s investor day the previous week. However, the company’s shares fell more than 4% on Monday. Oracle stock initially rose after the investor event, where the company forecast at least $225 billion in revenue for fiscal 2030.
Investor concerns have grown around the amount of debt Oracle is taking on to finance its AI infrastructure. The company’s shares are down 33% in 2026 and 50% over the past 12 months.
Oracle’s credit-market indicators have also come under pressure. The yield on its investment-grade 4.95% bond due in 2031 stood at 7.157%, while the spread on its five-year credit default swaps reached 296, up 270% over one year. S&P Global Market Intelligence’s Gavan Nolan said the spread was more consistent with a high-end junk bond rating.
Oracle remains investment grade, although S&P downgraded it to BBB- in July, one level above high yield. The company reported $125.34 billion in debt as of August 31, most of it in senior notes.
Sources: CNBC Markets.