Microsoft sells $20bn in debt to fund LinkedIn purchase

Microsoft sold $20bn in debt overnight to help fund its acquisition of LinkedIn in what amounted to the fifth largest corporate bond issue on record, according to the Financial Times.

The sale which was met with intense demand from portfolio managers as they rushed to the auction in their search for higher yields against a backdrop of trillions of dollar in sovereign and corporate debt that were then trading below zero.

The agreement to buy the professional social network was announced in June of 2016 for $26bn, as part of CEO Satya Nadella's attempts to stimulate quicker growth at Microsoft.

Foreign investors had also been flocking towards US assets at a rapid pace after the European Central Bank and the Bank of Japan cut interest rates into negative territory and stepped up their respective bond-buying programmes.

"We are seeing tremendous interest from overseas. Even domestically you have pension funds and insurance companies that can't get to their yield targets but have to get as close as they can," said Chuck Burge, portfolio manager with Invesco.

Under the agreement of the purchase of LinkedIn, the network would retain its distinct presence, culture and independence.

Jeff Weiner was to remain the chief executive officer of the company reporting to Microsoft CEO Satya Nadella.