“Apple Inc. is poised to borrow cash in euros at some of the lowest interest rates on record for a company, following up on a plan set out earlier this year to issue bonds in currencies other than the dollar,” Ben Edwards reports for The Wall Street Journal. “The iPhone maker will raise €2.8 billion ($3.5 billion) from two chunks of euro debt maturing in eight and 12 years.”
“Bankers managing the bond sale said the eight-year notes will give investors a yield of roughly 1.1% and the 12-year notes around 1.7%,” Edwards reports. “Those will beat the lowest yields ever paid for euro-denominated, corporate bonds of these maturities, according to Dealogic data, reflecting solid confidence that the bonds represent a safe bet.”
“Apple spoke with investors on Monday about issuing bonds and will use the proceeds of the sale for general corporate purposes, including share buybacks and dividend payments,” Edwards reports. “Deutsche Bank AG and Goldman Sachs Group Inc. are the banks running the euro sale, which is expected to be completed later Tuesday.”
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