Tech giant Apple has sold €2.8bn (£2.2bn) marking the company's first nondollar debt offer.
The sale was divided between into two equal parts with one-half of the debt maturing in eight years, with a yield of one per cent and the other in 12 years, with a yield of 1.5 per cent.
Goldman Sachs and Deutsche Bank are handling the sale. Apple will benefit from Europe's rock-bottom yields and could lead the way for other major corporate borrowers. Apple told investors yesterday that the cash raised will be used for dividends and share buybacks.
Apple boasts Aa1 rating from Moody's Investors Service, and an AA+ rating from Standard & Poor's. Apple has raised $29bn from bond sales since 2013. The company's cash pile of $155bn resides mostly outside the US. Were it to return it would be subject to one of the highest rates of corporation tax in the world.
■ Apple eight-year note (Nov ‘14) – 1.08 per cent yield