Apple has again turned to the Australian debt market and raised A$1.425 billion ($1.04 billion) on Friday, as it looks for funding without touching its cash pile.
The iPhone maker has issued three sets of bonds maturing in June 2020, January 2024, and June 2026, two sources familiar with the matter anonymously informed Bloomberg.
The sale comes as buyers increasingly embrace the higher yields offered by longer-tenor debt as unprecedented global easing drives down the interest rates offered by fixed-income investments. In Australia, Apple joins the likes of Qantas Airways Ltd., Coca-Cola Co. and Asciano Ltd. in selling securities beyond the seven-year mark that’s been the limit for many non-financial corporate borrowers in recent years.
The sources say Apple has sold A$325 million in 10-year bonds with a yield of 1.35% more than the swap rate. The majority of the amount, A$650 million, came from the sale of 4-year bonds with a yield of 0.82% more than the swap rate, and the 2024 bonds were priced at a gap of 1.25%.
Apple previously sold bonds in Australia in August 2015, when it raised A$2.25 billion, the most ever in Australia by a firm outside the services industry.