“Apple Inc. is seeking to add to its recent run of blockbuster bond deals with a debut sale in Swiss francs, according to one of the banks arranging the offering,” Ben Edwards reports for The Wall Street Journal. “Goldman Sachs Group Inc. and Credit Suisse Group AG have been hired to manage the potential sale, which could come as soon as Tuesday, a banker said.”
“Soaring demand for Swiss franc-denominated debt has sent government-bond yields into negative territory, meaning that investors are now willing to pay to lend Switzerland cash for as long as 10 years,” Edwards reports. “Those negative yields mean that Apple will also be able to borrow cheaply, because corporate bonds are typically linked to the price of government debt.”
“The maturity of Apple’s proposed deal hasn’t been decided but a short-dated bond could be sold with a negative yield—a first for a corporate bond issued in Europe,” Edwards reports. “Investors say Apple may consider a 10-year or 15-year bond, meaning that the yield would probably be lower than 0.5 percentage point.”
Read more in the full article here.
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