Apple plans to issue $5bn worth of bonds

Lynsey Barber
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Apple is offering more bonds (Source: Getty)

Apple is issuing new bonds thought to be worth $5bn (£3.3bn) to fund a host of “general corporate purchases,” including share repurchases, dividends, capital expenditures and acquisitions, and repayment of debt.

Despite a record quarterly earnings of $18bn, the tech giant is making the most of the record-low costs of corporate borrowing.

Seven, 10 and 30 year fixed and floating rate bonds with a minimum value of $2,000 will be made available, with Goldman Sachs and Deutsche Bank handling the sale.

Floating and fixed rate notes will be due in 2020, and further fixed rate notes will be due in 2022, 2025 and 2045. A yield rate has not been disclosed in its preliminary filing with the SEC.

The company issued its first non-dollar debt offering in November last year, selling €2.8bn (£2.2bn) of euro bonds to take advantage of rock-bottom borrowing rates. It offered a 1.08 per cent rate on the eight-year note.

Apple stock hit an all-time high of $120 per share last week.

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