Apple Looking to Raise $3.5 Billion From Bond Sale Involving Euros [Updated]

appleeurobondsale Following yesterday's report that Apple was preparing to hold a new bond sale that includes a component denominated in euros, the company today filed a prospectus with the Securities and Exchange Commission outlining its general plans, which include two chunks of debt with staggered maturities. The Wall Street Journal has more details on the prospectus and how its yields will be the lowest ever for 8-year and 12-year debt:

The iPhone maker is seeking to raise at least €1 billion ($1.2 billion) from two chunks of euro debt maturing in eight and 12 years.

Those would 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. Bankers managing the bond sale suggested the eight-year notes will give investors a yield of roughly 1.1% and the 12-year notes around 1.7%.

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.

This would mark first time that Apple would begin issuing bonds in euros, with Deutsche Bank and Goldman Sachs arranging the sale. This past April, Apple held a $12 billion bond sale, which followed a record $17 billion sale last year. Apple's bond offerings are a part of its expanded capital return program, which primarily involves a major stock buyback program and a quarterly dividend that aims to return more than $130 billion to shareholders by the end of 2015.

Update: The Wall Street Journal has revised its article to note Apple is actually looking to raise €2.8 billion ($3.5 billion) in the bond sale.

Popular Stories

mac mini thermal architecture feature

New Mac Mini Has Modular Storage, 256GB Model Will Have Faster SSD

Friday November 8, 2024 7:06 am PST by
Apple has returned to using two 128GB storage chips in the new Mac mini with 256GB of storage, according to a partial teardown video shared on social media today. This means the base-model Mac mini with the M4 chip will not have significantly slower SSD speeds compared to higher-end configurations of the computer with 512GB, 1TB, or 2TB of storage, as multiple NAND chips allows for faster SSD...
best buy holiday

Best Buy Reveals Black Friday Plans With Sitewide Sales Available Now

Friday November 8, 2024 10:05 am PST by
Black Friday sales are continuing today with Best Buy kicking off early Black Friday deals that will last for the next few days. Similar to other retailers, Best Buy's early Black Friday event includes sitewide savings on Apple products, headphones, TVs, monitors, video games, and more. Note: MacRumors is an affiliate partner with Best Buy. When you click a link and make a purchase, we may...
iphone passcode green

Cops Suspect iOS 18 iPhones Are Communicating to Force Reboots, Making Unlocking Harder

Thursday November 7, 2024 2:20 pm PST by
Law enforcement officials in Detroit, Michigan are warning other police officers about an alleged iPhone change that causes Apple devices stored for forensic examination to spontaneously restart, reports 404 Media. iPhones that are undergoing examination have apparently been rebooting, which makes them harder to unlock with brute force methods, and Michigan police think that it's due to a...
Generic iOS 18

Everything New in iOS 18.2 Beta 2

Monday November 4, 2024 12:34 pm PST by
Apple today seeded the second betas of upcoming iOS 18.2 and iPadOS 18.2 updates to developers, and Apple is continuing to refine the Apple Intelligence capabilities. There are also a handful of smaller features that are worth knowing about. Find My Find My has a new option to Share Item Location with an "airline or trusted person" that can help you locate something that you've misplaced....
M4 MacBook Pros Thumb

M4 MacBook Pro Reviews: Processor Benchmarks Impress, New Nano-Texture Option Worth the Extra $150

Thursday November 7, 2024 6:14 am PST by
The first wave of reviews of Apple's new M4-powered MacBook Pro models were published this morning. We've collected some of the latest impressions from YouTube channels and select media outlets below. Apple last month announced the new 14-inch and 16-inch MacBook Pro models, adding next-generation M4, M4 Pro, and M4 Max chips, with Thunderbolt 5 ports on higher-end models, display and camera ...
High Power Mode Feature 2

Apple Expands High Power Mode to MacBook Pro and Mac Mini Models With M4 Pro Chip

Thursday November 7, 2024 12:15 pm PST by
High Power Mode is available on the 14-inch MacBook Pro, 16-inch MacBook Pro, and Mac mini models with the M4 Pro chip, according to Ars Technica's Andrew Cunningham. The feature was previously limited to Macs with Apple's highest-end "Max" chip, so this is the first time it is available on Macs with a "Pro" chip. This is the second time that Apple has expanded availability of High Power...
early apple watch black friday

The Best Early Black Friday Apple Watch Deals

Wednesday November 6, 2024 6:33 am PST by
Black Friday is just around the corner, and Apple Watch deals have begun appearing ahead of the shopping holiday on November 29. In this article, we'll take a look at all of the best early Black Friday Apple Watch deals, including the new Series 10 models. Note: MacRumors is an affiliate partner with some of these vendors. When you click a link and make a purchase, we may receive a small...
iOS 18 Notes Feature

How to Fix iPhone Notes Disappearing After Accepting New iCloud Terms

Thursday November 7, 2024 7:57 am PST by
Apple in September updated its iCloud terms and conditions with some minor changes, and this week it has been notifying iPhone users that they must accept the revised terms in order to continue using iCloud. Unfortunately, after accepting the new terms, some iPhone users have seen all of their notes disappear in the Notes app. While some users have turned to social media to justifiably panic ...

Top Rated Comments

foobarbaz Avatar
131 months ago
Euro? Bit risky with a currency that almost bankrupted itself?

Obviously you were just trying to be clever and don't know much about finance.

If you assume the Euro might be worthless soon, then taking debt in Euro is not a risk. As the Euro falls, your debt (measured in USD) decreases.

The risk, however, is that the Euro is somewhat low at the moment. If it gains (the USD falls), the debt will increase.

Generally speaking, EUR/USD is somewhat stable, though. It has been circling 1.30 EUR/USD for a decade.
Score: 18 Votes (Like | Disagree)
syklee26 Avatar
131 months ago
Can I buy the bonds with Apple Pay?
Score: 6 Votes (Like | Disagree)
throttlemeister Avatar
131 months ago
Euro? Bit risky with a currency that almost bankrupted itself?

*snicker*

You mean that currency that was designed to be 1:1 to the US$, but dropped to $0.8 after its introduction and then climbed to be over $1.50. And then in the American induced crisis went down to fluctuate mostly between $1.30 and $1.40? That currency?

You shouldn't believe all that you see on Fox mate. In fact, you probably shouldn't believe anything you see on Fox, but that's a different discussion.
Score: 5 Votes (Like | Disagree)
Ritstu Avatar
131 months ago
So the question is: Why would anyone buy it from them if inflation will make you lose money?

So I'm guessing that you don't have any money that is saved in a Money Market account, a savings account, or a checking account that pays interest? What about CDs? All of these will not make money over inflation (in a typical inflation year - obviously not when it's 0%), yet people keep their money in them due to the fact that they are safe and liquid.

Buying these bonds, while they may not be as liquid, is a safe investment that could be sold before maturity if needed. You get a better rate with these bonds than the majority of accounts that are available that I listed above.

Personally, I agree with your statement that I wouldn't buy them just because I prefer riskier investments but there is definitely a place in the market for these and they will be bought up quickly when they go to market.
Score: 3 Votes (Like | Disagree)
TallManNY Avatar
131 months ago
Chump change. What's the point of Apple doing such a small issuance?
Score: 3 Votes (Like | Disagree)
captain cadet Avatar
131 months ago
Euro? Bit risky with a currency that almost bankrupted itself?
Score: 3 Votes (Like | Disagree)