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Apple issues $1.04 billion in second round of Australian bonds

Apple reportedly sold A$1.425 billion ($1.04 billion U.S.) in Australian bonds on Friday, looking to raise more funding without tapping into its $233 billion U.S. in cash reserves.




The company issued three sets of bonds maturing in June 2020, January 2024, and June 2026, according to sources for Bloomberg. The 10-year bonds are particularly unusual in Australia, where many issuers outside of the financial industry don't exceed seven years.

Apple is said to have sold A$325 million in 10-year bonds, with a yield of 1.35 percentage points over the swap rate. The bulk, A$650, came in the form of the four-year bonds, up 0.82 percentage points over swap. The 2024 bonds accounted for the remaining A$450, with a yield of 1.25 percentage points.

The company's first foray into the Australian bond market came in August 2015, when it managed to raise A$2.25 billion (about $1.642 billion U.S.). That was the most ever achieved in Australia outside of financial firms.

The new money will presumably be put towards Apple's continuing program of dividends and share buybacks. The company is in fact expected to launch its first Taiwanese bonds in the near-future, selling between $800 million and $1.2 billion U.S. in 30-year securities.