Microsoft raises $ 8 billion through sale of securities

Tags: Companies
Technology giant Microsoft has raised about $ 8 billion by selling securities and the proceeds would be utilised for funding acquisitions, among others.

The fund raising exercise comes at a time when Microsoft is in the process of acquiring the devices and services businesses of Finnish handset maker Nokia in a deal worth $ 7.2 billion.

The total amount includes bonds denominated in the US dollar as well as euros.

Microsoft has sold securities -- that have maturity periods of 5, 10 and 20 years -- worth $ 3.25 billion, the company said in a filing to the US Securities and Exchange Commission (SEC) yesterday.

Separately, the firm also offered securities, which are due to mature in 2021 and 2028, amounting to a total of 3.5 billion euro (about $ 4.76 billion).

"The net proceeds from the sale of the notes will be used for general corporate purposes, which may include, among other things, funding for working capital, capital expenditures, repurchases of our capital stock, acquisitions and repayment of our existing debt," Microsoft said.

Last month, Nokia's shareholders approved the sale of ailing cellphone and services division and licence to a portfolio of patents to Microsoft. The sale is expected to complete in early 2014.

The deal is expected to provide a strong foothold for Microsoft in the fast growing and highly competitive smartphone market.

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