Citing “sources familiar with the matter”, Reuters reports that Apple plans to raise $1 billion by issuing 30-year bonds in Taiwan. Apple would be following the example of other companies who have already have benefitted from Taiwan’s busy debt market.
For example, last December Intel sold $915 million in 30-year bonds with yields of 4.7%. Anheuser Busch InBev SA, a global brewer, raised $1.47 billion a month later on the same maturity at 4.915%.
“Taiwan insurance companies don’t have enough good (quality) fixed-income investment targets,” said an official at a local securities house, declining to be identified as he was not authorised to talk to the media. “But their funds continue to grow because in this low rate macro-environment. Consumers prefer to buy financial products offered by insurance companies rather than park money in a bank deposit,” he said.
Analysts believe the planned offering is to help Apple secure solid partnerships with its suppliers.