Apple has revived Australia’s bond market, selling a record $2.25 billion worth of bonds last week.
It’s the latest of a bunch of foreign companies that have issued Australian dollar bonds, including SAB Miller’s $700 million debt raising, Bank of Nova Scotia with a $600 million raising and Goldman Sachs selling $350 million worth of bonds.
The Apple deal more than doubles BHP Billiton’s record for the largest ever corporate bonds sale in Australia.
The Australian dollar Apple bonds diversify the company’s funding structure and Apple’s AA+ rating is higher than Australia’s major banks, making it an attractive deal for local investors.
It also boosts the profile of Australia’s bond market and bankers will be hoping it lures more international companies to launch similar offerings.
In less than 24 hours Apple’s fund managers received more than $3 billion in orders for its Australian dollar debt issuance.
Order books opened on Thursday morning and within two hours Apple’s banks Goldman Sachs, CBA and Deutsche had passed the $1.2 billion mark.
Apple will use the funds for corporate expenses, including share buy-backs, working capital, debt repayments, acquisitions and dividend payments.