Apple today launched an Australian dollar corporate bond issue and within two hours of opening order books hit $1.2 billion.
The tech company is offering a two-part benchmark bond sale, with both four-and seven-year bonds in fixed and floating formats.
The AFR reports the raising could be between $500 million and $1 billion but by 10.30 am orders had reached $1.2 billion.
Guidance on the four-year bonds is 0.70 percentage points over the bank rate, about 3%. Pricing on the seven-year bonds is 1.15 percentage points, or about 3.8%.
Apple, which has a AA+ rating, will use the funds for corporate expenses, including share buy-backs, working capital, debt repayments, acquisitions and dividend payments.
In a little over two years Apple has raised $US50 billion in debt. Raising in Australia will diversify its funding.
CommBank, Deutsche and Goldman Sachs are managing the Australian dollar bond issue.
There’s more here.