Just after announcing plans to raise up to $50 billion in debt and equity through 2026, Oracle has rolled out a $25bn in a bond offering, and a $20bn equity distribution agreement.

In two separate February 2 filings on the SEC, Oracle announced a $20bn "equity distribution agreement," and $25bn of notes due in 2029.

The $20bn equity distribution agreement has been made with BofA Securities, Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, and J.P. Morgan Securities LLC, as sales agents, and will enable Oracle to sell "from time to time" its common stock on the New York Stock Exchange.

According to Oracle, as of January 30, the price was $164.58 per share.

The sales agents will receive a commission of up to 0.5 percent per share, and Oracle is also covering some of their expenses.

In total, the $20bn represents 121,521,448 shares, which will leave Oracle with 2.99 billion remaining shares of common stock outstanding.

The filing states that the net proceeds will be used for "general corporate purposes, which may include capital expenditures, repayment of indebtedness, future investments or acquisitions, and payment of cash dividends on or repurchases of our common stock."

The $25m notes offering, meanwhile, is split into $500m of floating rate notes due 2029, $3bn of 4.55 percent notes due 2029, $3.5bn of 4.95 percent notes due 2031, $3bn of 5.35 percent notes due 2033, $5bn of 5.7 percent notes due 2036, $2.25bn of 6.55 percent notes due 2046, $5bn of 6.7 percent notes due 2056, and $2.75bn of 6.85 percent notes due 2066.

The notes have BofA Securities, Inc., Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, BNP Paribas Securities Corp., PNC Capital Markets LLC, and SMBC Nikko Securities America, Inc. acting as joint book runners.

The notes have a rating of BBB.

According to a report from the Financial Times, investors have been somewhat mollified by the equity addition to its funding plan.

“It’s a much-needed signal to the market,” said George Catrambone, head of fixed income for the Americas at DWS Group. “It offers relief to existing bondholders that Oracle is committed to an investment-grade rating.”

The FT added that the notes have "significantly higher coupons" than other BBB offerings, with the ten-year portion of the bond expected to yield 1.45 percentage points above US Treasuries, compared to an average of 0.95 percentage points for other BBB companies.

The fund raise comes shortly after Nvidia has pulled back on its plans to invest $100bn in OpenAI, one of Oracle's largest customers.

Nvidia CEO Jensen Huang has clarified that the company will still make a "major investment," but has shifted tack on previous claims to invest $100bn in the AI start up. Speaking at a press event in Taipei, Taiwan, Huang said: “We never said we were going to invest $100 billion in one round. They invited us to invest up to $100 billion. And, of course, we were very happy and honored."

In response to this, Oracle posted on X: "The Nvidia-OpenAI deal has zero impact on our financial relationship with OpenAI. We remain highly confident in OpenAI’s ability to raise funds and meet its commitments."