EBay Inc. is taking advantage of record low interest rates to raise domestic funds it may use to reward shareholders while avoiding U.S. repatriation tax on the 87 percent of its cash held overseas.

The Internet marketplace, whose borrowing costs are about half that of other technology and electronic firms, paid a rate that's less than 90 percent of all investment-grade issues this year with a four-part offering on July 19, according to data compiled by Bloomberg. The San Jose, California-based company had $8 billion of cash on June 30, about $7 billion of which was outside the U.S.

While EBay has more than doubled in value since July 2009 by funneling money into its payments business, Chief Financial Officer Bob Swan said in a February 2011 investor presentation that overseas earnings inhibited its ability to distribute cash to shareholders. Proceeds from the new bonds may allow EBay to pay off outstanding debt and repurchase stock while avoiding a repatriation tax, according to Madison Investment Holdings Inc.