• Apple Issues an Australian Dollar-Denominated Bond

    Apple recently issued an Australian dollar-denominated bond, as it was expected to, with the value already reaching AU$1.2 billion, which translates to roughly $883 million. The first Australian issuance comes in the form of a two-part “benchmark” bond sale, which consists of four- and seven-year notes according to The Sydney Morning Herald.

    Price guidance of the fixed and floating rate four-year bonds is pegged at roughly 3% while the seven-year bonds are being offered at 3.80% or 0.7% and 1.15% over bank rates respectively. The issued Australian bond is currently being managed by Goldman Sachs, Commonwealth Bank and Deutsche Bank. Reports earlier this week mentioned that Apple’s debt offering would land somewhere between AU$500 million and AU$1 billion. Before the recent bond sale, Apple notably sold debt in the US dollars and euros but ended up taking an interest in low rate areas in both Asia and Europe.

    For those of you who didn’t know, Apple is thought to be taking advantage of international debt to fund its domestic capital return program. The company is set to pass $200 billion back to shareholders by the end of March 2017 but is hesitant when it comes to repatriate overseas cash due to high tax rates in the US. Out of the estimated $220 billion cash pile, the company is said to have more than $190 billion held in offshore subsidiaries.

    Source: The Sydney Morning Herald
    This article was originally published in forum thread: Apple Issues an Australian Dollar-Denominated Bond started by Akshay Masand View original post
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