Intel is to raise $1.4bn in a special bond issue, the company said yesterday.

The privately transacted offer will be made only to institutional investors since it centres on bonds, called debentures, that are not secured with company assets. Intel will sell the debentures now then buy them back in 2035 on terms to be negotiated with whoever buys the bonds first.

The purchaser will be looking to get back the sum spent plus a return on the 30-year investment - or at least the prospect of a sufficient return to tempt a further buyer some time in the future.

Intel said it will use the money for general corporate purposes, but added that it may also use the proceeds to buy back stock on the open market. ®