One of the largest IT companies in the world, Microsoft has decided to use some financial flexibility which comes from borrowing funds at comparatively low rates applicable today.

Despite having about 40 billion dollars in investments, the software giant has said that it is going to raise 1.15 billion dollars by selling debt which will be convertible to stock. This fresh amount of money would be used to payback the previous debt.

Company believes this decision will give the company more freedom to increase dividends or buy back stocks.

Experts have said that the software firm is under pressure from its investors to boost the shareholder’s return. As per a report of 31st March, the software giant Microsoft had total amount of cash and investments of 40 billion dollars and 6 billion dollars in short and long terms debt respectively.

The debt is comparatively less than that of the company generated 7.4 billion dollars in cash in its latest quarter alone. The same report says Microsoft had debt known as commercial paper worth 2.3 billion dollar which comes due in next one to seven months.