General Electric Co. is refinancing $5 billion of debt even asit expects to generate $100 billion of cash in the next four years,showing confidence in its ability to invest at returns four timesits borrowing costs.

The biggest maker of power-generation equipment sold $7 billionof bonds yesterday at an average 2.58 percent yield in the parentcompany's first issue in almost five years. That compares with a 12percent return that Chief Executive Officer Jeffrey Immelt saidlast week the Fairfield, Connecticut-based firm generates on itscapital.

The offering allows the company to use the cash it brings in forstock buybacks, dividends and acquisitions. While Immelt seeks topare debt at GE's finance arm, the offering may boost bonds of theparent by 22 percent to $11 billion next year.