“Apple Inc plans to issue bonds in Taiwan for the first time with the aim of raising $1 billion, sources familiar with the matter said, joining a queue of big global names that have sold billions of dollars on the island’s busy debt market,” Roger Tung reports for Reuters.
“Liquidity in the Taiwanese bond market is flush, with long-term buyers of debt, primarily life insurance firms, seeking creditworthy names and chasing higher yields,” Tung reports. “Blue-chip multinationals regularly issue dollar bonds of such size on the island, home to Apple’s supply chain.”
“Cash-rich and yield-hungry investors in Taiwan have made the island a haven for debt financing. These investors tend to hold through maturity, letting issuers lock in cheap pricing… The planned offering is likely to help Apple secure solid partnership with its suppliers, analysts said,” Tung reports. “The U.S. dollar bonds will have a tenor of 30 years and be calleable after the second year, the sources told Reuters on Wednesday, speaking on condition of anonymity.”
Read more in the full article here.
MacDailyNews Take: More free money!
ain’t no such-a thing as free money…. something no one should ever forget.
and thinking that there is will only get you into trouble further down the road.
Actually, this is free money for Apple.
So the rates at which Apple will be selling these bonds is zero (i.e., free money)?
Your comment supports exactly what your handle says you are. You want the fees and such associated with new bonds on the street. It may be “free money” for you (or really just “easy money”), but it is most definitely NOT “free money” for Apple.
Apple taking on debt in the U.S. for available cash in the U.S. rather than taking the tax hit of bringing profits back into the U.S. almost makes sense — ALMOST.
Apple taking on debt not in the U.S. when it really does not need that extra, outside U.S. cash is just plain stupid.
As of the last few years Apple has been more interested in pleasing people like you than pleasing its customers.
This is Apple’s innovation in Tim Cook’s world.
Taking on Debt when you don’t have to isn’t a good thing.
On the other hand, taking on debt when you have plenty of $$ is the best time to do so.
Usually it’s defined as an investment.