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.

14 Comments

lkrupp 10521 comments · 19 Years

About 8 years ago

Signaling the U.S. government there’s no way you’re getting your hands on 35% of that $230 billion we have stashed overseas? Not until you come up with a realistic plan that doesn’t soak us.

gatorguy 24609 comments · 13 Years

lkrupp said:

Signaling the U.S. government there’s no way you’re getting your hands on 35% of that $230 billion we have stashed overseas? Not until you come up with a realistic plan that doesn’t soak us.

They've presumably already paid some corporate taxes on those profits so wouldn't actually be paying 35% anyway ( and no big company does in the first place with numerous exemptions and loopholes available), but point made. What's unfortunate is that while yet another "tax holiday" may be granted by Congress the last one a few years back certainly didn't deliver the vaunted benefits to the working public did it? The already rich simply got richer.

thrang 1033 comments · 17 Years

gatorguy said:

lkrupp said:

Signaling the U.S. government there’s no way you’re getting your hands on 35% of that $230 billion we have stashed overseas? Not until you come up with a realistic plan that doesn’t soak us.

They've presumably already paid some corporate taxes on those profits so wouldn't actually be paying 35% anyway ( and no big company does in the first place with numerous exemptions and loopholes available), but point made. What's unfortunate is that while yet another "tax holiday" may be granted by Congress the last one a few years back certainly didn't deliver the vaunted benefits to the working public did it? The already rich simply got richer.

Rich people save, spend and invest, which spurs economic growth in various ways. It's just that rick people do it far more wisely than governments.

thrang said:

gatorguy said:

lkrupp said:

Signaling the U.S. government there’s no way you’re getting your hands on 35% of that $230 billion we have stashed overseas? Not until you come up with a realistic plan that doesn’t soak us.

They've presumably already paid some corporate taxes on those profits so wouldn't actually be paying 35% anyway ( and no big company does in the first place with numerous exemptions and loopholes available), but point made. What's unfortunate is that while yet another "tax holiday" may be granted by Congress the last one a few years back certainly didn't deliver the vaunted benefits to the working public did it? The already rich simply got richer.

Rich people save, spend and invest, which spurs economic growth in various ways. It's just that rick people do it far more wisely than governments.

Ah, Reagan's trickle-down theory. How's that working? I'm not exactly poor either, but what wealth I have was a result of hard work and very fortunate events. I don't consider myself any more "special" or deserving than the guy down the street working for the city in waste management. Much of where I am today was a matter of good timing and better luck IMHO. No matter how hard they try or how wise they are with their money that luck and timing that benefited me just doesn't cooperate with many many others. I refuse to lose track of where I came from, what it took to get here, or imagine that I'm somehow that much smarter and deserving than anyone else is, but I have friends that seem to have forgotten.

So getting back to your comment what are those wise investments spurring job creation for the less-fortunate made by the 62 people who collectively have more wealth than 50% of the entire world, making them more worthy of doling out a little here and there for the rest of us? At some point the anger at the rapidly increasing inequality is going to boil over into actions IMHO. Simply working hard increasingly fails many families. It's a short-sighted policy to play favorites with the ones who already made or were given theirs.

Sorry for the off-topic diatribe, I won't comment on it further in this thread. Everyone as they were.

gatorguy said:

thrang said:

Rich people save, spend and invest, which spurs economic growth in various ways. It's just that rick people do it far more wisely than governments.

Ah, Reagan's trickle-down theory. How's that working? I'm not exactly poor either, but what wealth I have was a result of hard work and very fortunate events. I don't consider myself any more "special" or deserving than the guy down the street working for the city in waste management. Much of where I am today was a matter of good timing and better luck IMHO. No matter how hard they try or how wise they are with their money that luck and timing that benefited me just doesn't cooperate with many many others. I refuse to lose track of where I came from, what it took to get here, or imagine that I'm somehow that much smarter and deserving than anyone else is, but I have friends that seem to have forgotten.

So getting back to your comment what are those wise investments spurring job creation for the less-fortunate made by the 62 people who collectively have more wealth than 50% of the entire world, making them more worthy of doling out a little here and there for the rest of us? At some point the anger at the rapidly increasing inequality is going to boil over into actions IMHO. Simply working hard increasingly fails many families. It's a short-sighted policy to play favorites with the ones who already made or were given theirs.

Sorry for the off-topic diatribe, I won't comment on it further in this thread. Everyone as they were.

The issues are far more complex then the rich being rich, you should know that. Government waste is atrocious, so the value of taxation is far less beneficial than the value of private investment, commerce, or entrepreneurialism. We can't even get a pothole properly filled in the northeast, much less expect the government to solve the serious issues we have.
The problem is we are already taxed too much. There are many endeavors we are currently postponing because of ever increasing taxes, from home improvements to a new car to vacationing. Each would generate job opportunities and consumption based taxes that now are not being created or realized.
Trickle-down would work a lot better if the first hand collecting most of the run-off wasn't the government.