Microsoft has raised about $2.7bn in bond offering in the US and European markets, tapping bond investors ahead of competitor Apple’s proposed bond issue.
As part of the move, the software maker sold $1.95bn in the US market, representing the firm’s fifth US bond deal since 2009, in addition, seeking to raise €550m with a 20-year maturity.
The proceeds obtained from the bond sale will be used for general corporate purposes, such as funding for working capital, capital expenditures, repurchase of capital stock, acquisitions and repayment of existing debt.
Microsoft spokesman Pete Wootton was cited by the Wall Street Journal as saying it allows more investors across Europe to participate in a triple-A-rated offering.
"The pricing/coupon in Europe is very attractive in this 20-year tenor," Wootton said.
"Overall, the debt is opportunistic and helps us lower the overall cost of capital — similar to what we have done in the U.S."
Microsoft currently has about $69bn in cash and short-term investments on its balance sheet that are largely outside US.
In November 2012, Microsoft raised $2.25 billion in the US bond market.
