Oracle has priced $10bn in bonds and $10bn in new shares, completing the $20bn fundraising it says it needs to finish financing its AI data centre expansion.

The deals, priced late on Monday, came with high borrowing costs and a sizeable discount for new shareholders.

The bond offering was split into five fixed-rate tranches maturing between 2029 and 2046, according to the pricing term sheet filed with the SEC. Coupons range from 7% on the shortest-dated notes to 8.65% on the 2046 bonds.

The largest tranche, worth $2.5bn and maturing in 2037, carries an 8% coupon. A floating-rate tranche included in the preliminary offering was dropped.

The shares were priced at $116 each, with Oracle issuing 86.2 million new shares. That represents a discount of around 11% to Friday’s closing price of $130.67. Oracle expects to receive around $9.9bn in net proceeds. Both offerings are scheduled to close on 4 November.

Investors reacted to the cost of borrowing and the dilution from the new shares.…