Apple to Raise $3.5 Billion From Bond Sale in Euros: WSJ

Apple cash

Rumours of Apple issuing bonds in euros surfaced yesterday, and the Wall Street Journal has posted a follow-up report with additional details of the deal. As previously mentioned, this will be an Apple first – borrowing money in euros.

The iPhone maker will raise €2.8 billion ($3.5 billion) from two chunks of euro debt maturing in eight and 12 years.

Bankers managing the bond sale said the eight-year notes will give investors a yield of roughly 1.1% and the 12-year notes around 1.7%.

Those will beat the lowest yields ever paid for euro-denominated, corporate bonds of these maturities, according to Dealogic data, reflecting solid confidence that the bonds represent a safe bet.

Apple’s ratings give the company a great advantage: AA+ from S&P’s and Aa1 from Moody’s Investors Service. The iPhone maker has issued bonds before, even earlier this April, raising $12 billion, and last year managed to raise a record $17 billion.

The money was used to finance general corporate purposes, stock buyback, and dividend payments. Apple plans to do the same with the latest sale of bonds in euros.

Technology enthusiast, rocker, biker and writer of iPhoneinCanada.ca. Follow me on Twitter or contact me via email: istvan@iphoneincanada.ca

  • Tim

    Phew…I was worried that Apple was going to run out of cash on hand. Glad they’ve found a solution.