Apple Prepares For Swiss Franc Bond Sale: WSJ

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Following its earlier $6.5 billion debt sale, Apple is now looking to debut in Swiss franc bond sales, reports the Wall Street Journal. Goldman Sachs and Credit Suisse have been hired to instrument the potential sale, which could come as early as tomorrow, a source has revealed.

Apple’s plan makes sense, as the company will be able to borrow cheaply, considering that the Swiss franc has risen sharply since last month when the Swiss central bank removed its cap on the strength of the franc against the euro.

“Given the current pricing on Apple deals and where Swiss government bonds are, any new Swiss-franc deal is likely to price with an extremely low funding cost,” said Chris Telfer, a specialist portfolio manager at ECM Asset Management in London.

“Much like in the euro market, we think retail demand for Apple bonds will be strong in the Swiss franc market,” said Thibault Colle, a credit strategist at UBS.

There is no public information available about the maturity of Apple’s deal, but investors say the iPhone maker may be interested in a 10-year or 15-year bond, meaning that the yield would be lower than 0.5 percentage points.