Microsoft Corp., the world'slargest software maker, is selling bonds in euros for the firsttime, joining LVMH Moet Hennessy Louis Vuitton SA and NestleSA in taking advantage of record-low borrowing costs.

Microsoft is raising 550 million euros ($719 million) from20-year notes, according to a person familiar with the transaction.French luxury goods maker LVMH is selling its first euro bonds intwo years, while Nestle, the world's biggest food company, ismarketing its first securities in the currency since October.

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Microsoft's deal will be priced to yield about 60 basis pointsmore than swaps, according to the person who asked not to beidentified because the details are private. Photographer: StuartIsett/Bloomberg

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It's the busiest day in six weeks for issuance in Europe, asnon-financial companies sell 3.9 billion euros of bonds, accordingto data compiled by Bloomberg. The average yield investors demandto hold investment-grade corporate bonds in euros has fallen to arecord 1.84 percent, Bank of America Merrill Lynch data show.

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“People are desperate for yield and there is not much to find inthe government market so they will jump into corporate bonds,” saidThomas Kristiansson, head of credit fixed income at SEB AB inStockholm. “These deals are coming tight.”

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Microsoft's deal will be priced to yield about 60 basis pointsmore than swaps, according to the person who asked not to beidentified because the details are private. Bank of America andRoyal Bank of Scotland Group Plc are the active bookrunners on thedeal for the Redmond, Washington-based company, which has $14.3billion of bonds outstanding, according to Bloomberg data.

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LVMH is selling 500 million euros of notes due November 2019that will be priced to yield 32 basis points more than the mid-swaprate. The Paris-based company last sold euro-denominated bonds inMarch 2011, Bloomberg data show.

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Vevey, Switzerland-based Nestleis raising 500 million euros withbonds maturing May 2020 that will be priced to yield 17 basispoints more than mid-swaps. The notes may be rated Aa2 by Moody'sInvestors Service.

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General Electric Co., thelargest maker of jet engines, is marketing a two-part deal, selling750 million euros of floating-rate notes due May 2016 and 1.25billion euros of fixed notes maturing May 2017, a person withknowledge of that transaction said. The Fairfield,Connecticut-based company's three-year notes will yield 45 basispoints more than three-month Euribor and its four-year securitieswill yield 50 basis points more than swaps.

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The cost of insuring against losses on corporate debt rose forthe first time in five days. The Markit iTraxx EuropeIndex ofcredit-default swaps linked to 125 investment grade companiesclimbed one basis point to 108, after falling to the lowest levelin more than a month yesterday.

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Medi-Partenaires SAS is marketing a debut bond in the high-yield market. The French private hospital operator is selling 385million euros of senior secured bonds due 2020 that may be calledby the company after three years, according to a person familiarwith the matter.

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The notes may be rated B3 by Moody's, six steps below investmentgrade, according to the person who asked not to be identifiedbecause they're not authorized to speak about it. The Paris-basedcompany will use the proceeds to refinance a portion of its seniorand subordinated shareholder funding and to pursue acquisitions, itsaid in a statement.

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