Microsoft raises $3.75 billion in first bond offering

12 May 2009

For the first time in its history Microsoft Corp sold bonds to investors cashing in on its credit rating and investor appeal to raise $3.75 billion.

The software giant was able to sell bonds at interest rates at only a marginal premium to US government debt and at substantially lower rates than other corporates.

The move triggered speculation about a possible acquisition to revive growth but people in the know deny that the company is working on any specific deal.

The company offered notes with maturity of five, 10 and 30 years.

The company's offering received the highest ''AAA'' rating from Moody's Investors Service. The software giant is among a few US companies still rated 'AAA' by both Moody's Investor Service and Standard & Poor's.

According to Moody's Richard Lane, the AAA rating for the company's inaugural debt instrument reflected the company's position as the world's largest software company with a strong and defensible market position throughout its diverse core offerings.