By Dena Aubin

NEW YORK, May 10 (Reuters) - Overseas expansion by corporate America is fueling a multibillion-dollar rush of debt issuance by U.S. companies in foreign markets, cheering European investors otherwise starved for bond supply.

U.S. companies have issued an equivalent of $96 billion in bonds in euros, sterling and other major non-dollar currencies year to date, up from $55 billion last year, according to financial data provider Dealogic.

"We've seen a number of U.S. companies tap the European market because they're making acquisitions here and they want to get some euro funding -- and they can," said Joe Biernat, director of research for European Credit Management in London. "The European market is big and deep, and there are plenty of investors here who are happy to lend."

Euros are the top foreign currency used by U.S. debt issuers, with about $67 billion equivalent in debt sales year to date, followed by $12 billion in British pounds and $5 billion in Australian dollars, according to Dealogic.

Companies expanding overseas can issue in foreign currencies without being hurt by a sinking dollar. Because their revenues are in non-dollar currencies, no currency exchange is involved in servicing debt.

"Companies are increasingly going overseas to secure financial capital and in doing so they're relying on non-U.S. currencies, especially when they can match new debt liabilities with foreign currency cash flows," said John Lonski, chief economist for Moody's Investors Service.

OVERSEAS INVESTMENT AT RECORD

U.S. investment abroad hit a record $248.9 billion last year, topping the previous high of $244.1 billion in 2004, Lonski said, citing U.S. Bureau of Economic Analysis data.