Home Depot (HD) is planning to buy back $1 billion of its shares in an accelerated program with Barclays Capital (BCS) and refinance another $1 billion of senior notes that matured this month.

The stock repurchase adds to the company’s previously announced plan to buy about $2.5 billion of its shares throughout 2011 using excess cash generated by the business. In the eight-year period ended in 2010, Home Depot repurchased some $30.1 billion of its stock.

Noting 2010 was the company’s first year of positive sales growth since 2006, Home Depot CEO Frank Blake said the retailer chose to take advantage of attractive interest rates and raise incremental debt capital for share repurchases. The world’s largest home improve retailer said it will fund the move by offering $2 billion worth of senior notes.

“Creating strong shareholder value is a priority, and we are committed to returning capital to our shareholders in the form of dividends and share repurchases,” he said.

Earlier this year, the company announced a 6% increase in its quarterly dividend.

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