Lowe's Cos. is raising $2 billion in the bond market to financestock repurchases as the second-biggest U.S. home-improvementretailer boosts leverage to reward shareholders even as itsprofitability wanes.

Lowe's sold five-, 10- and 30-year debt yesterday, five monthsafter the company that sells products from flowers to washingmachines issued $1 billion of notes. The retailer may use proceedsto buy back shares, according to a regulatory filing. Lowe's plansto increase its leverage to as much as 2.25 times from 1.8 times,Robert Hull, Lowe's chief financial officer, told an earningsconference call in November.

That should raise concern among bondholders that theMooresville, North Carolina-based retailer will add to a $9.2billion debt load when earnings rise, according to BrookfieldInvestment Management Inc. The company plans to repurchase $4.5billion of stock annually until 2015 even after same-store saleswere little changed last year and margins narrowed.