“Apple Inc sold a 30-year U.S. dollar bond in Taiwan at a yield of 4.15 percent, sources said on Tuesday, aiming to raise between $1 billion and $1.2 billion in the first issue of debt by the U.S. technology giant on the island that is home to major players in its supply chain,” Roger Tung reports for Reuters.
“The yield compares with a range between 4.2 percent to 4.3 percent ahead of its pricing, people familiar with the deal earlier told Reuters,” Tung reports. “The total amount raised by the bond – callable after the second year – had not yet been finalised, the people said, speaking on condition of anonymity because the matter was confidential. Subscriptions rates in the sale couldn’t immediately be determined.”
“The U.S. giant joins a crowd of big global names that have sold billions of dollars on the island’s busy debt market,” Tung reports. “Liquidity in the Taiwanese bond market is high, with long-term buyers of debt, primarily life insurance firms, seeking creditworthy names and chasing higher yields.”
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MacDailyNews Take: Apple keeps making all the right moves. Giving that cash pile something to do by issuing debt benefits both Apple and theirs investors.