Oracle Financial Services shares fell 6.5 percent on the National Stock Exchange Monday after the Financial Times reported that roughly $18 billion of loans tied to an Oracle-leased data center in New Mexico were trading at a discount. The stock opened at ₹11,787 against Friday’s ₹11,896 close and touched an intraday low of ₹11,061.
The debt discount
Syndicate banks including Santander and Jefferies were quoting the paper at 89 to 91 cents on the dollar, the FT said. Efforts to spread the debt across a wider investor base have stalled, leaving the arranging banks with larger positions on their balance sheets than they originally intended.
Local opposition and Project Jupiter
The 1,400-acre “Project Jupiter” campus in Doña Ana County sits at the center of Oracle’s agreement to supply AI computing capacity to OpenAI. Growing community resistance, focused on water consumption and air quality, threatens to disrupt that expansion, according to the report.
Credit profile deterioration
Oracle’s corporate credit rating sits one notch above junk after S&P’s July downgrade. The company has ramped up spending to build out AI infrastructure, and its rising leverage has drawn sharper scrutiny from fixed-income investors.
Stock performance context
Despite Monday’s slide, the shares have gained 5.5 percent over the past week. They are down 5.19 percent over the past month but remain up 44.6 percent year to date. The one-year return stands at 23.26 percent, the three-year advance at 161.28 percent, and the five-year gain at 138.09 percent.