Apple is continuing to raise debt outside the US. This time, the iPhone maker is eyeing up the Australian bond market, sources speaking with Reuters claim. The expectations are between A$500 million and A$1 billion, at least according to a banker not involved in the transaction, cited by the news outlet.
Apple will begin investor calls tomorrow, ahead of the potential debut in the Australian bond market. If Apple manages to raise more than A$1 billion, its bond sale will set a new record for Kangaroo bonds (the name given to bonds from foreign issuers in the Australian market). As of now, the biggest Kangaroo bond sale has been orchestrated by mining giant BHP Biliton, at A$1 billion.
Apple debuted in the bond market in May 2013 when it raised a stunning $17 billion. Since then, it has raised $1.99 billion from its first euro-denominated issuance in November 2014, and $1.28 billion in Switzerland. More recently, it has also turned to the Japanese market, issuing $2.1 billion worth of five-year global yen bonds, and last month it debuted in the sterling market, raising $1.95 billion.
All of the above are part of Apple’s strategy to raise money in order to fund its share buyback program. The company has said it will return $200 billion in cash to shareholders by March 2017, and has increased its program to $140 billion and said it will turn to international and domestic debt markets to fund the program.