Private equity firms used bonds to extract a record amount of cash from companies they own, with more than 38 companies borrowing at least €5.2bn ($6.8bn) to fund dividend payments this year.

Bonds were the preferred option as yields from non-investment grade debt declined to their lowest point since the euro was introduced in 1999, according to rating agency Fitch Ratings. Fitch also revealed that the number of private equity-backed companies using bonds to fund dividends had risen from 25 in 2005 to 38 this year.