Ford Motor Co., the second-largest U.S. automaker, issued $2billion of bonds in its first sale of fixed-rate debt maturing inat least 30 years since 1999.

The 4.75 percent securities due January 2043 were priced toyield 180 basis points more than similar-maturity Treasuries,according to data compiled by Bloomberg. Proceeds from the salewill be used to refinance debt and to fund its pension plan. Thenotes may be rated Baa3, the lowest level of investment grade, byMoody's Investors Service.

The offering from Ford, which was lifted last year to high gradeat Moody's and Fitch Ratings, comes as auto sales surge and withborrowing costs touching record lows. Ford's U.S. light-vehiclesales rose 1.6 percent in December, the company said today,exceeding the 1.2 percent increase forecast by analysts surveyed byBloomberg.

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