Apple Considering $1.6 Billion Bond Sale in Japan

by

Apple Red LogoApple is considering issuing about 200 billion yen ($1.62 billion) in bonds as early as June in Japan, in what would be the company's first fundraising activity in the country, according to Nikkei. The report claims that Apple plans to take advantage of low interest rates in Japan to procure the funds, which could be used to boost shareholder rewards and expand Japanese operations.

"Early this month, Apple started gauging potential demand for the yen-denominated bonds among regional banks, life insurers and other institutional investors," claims the Nikkei Asian Review. "The bonds will target Japanese investors but will likely be sold to overseas investors as well."

Apple has issued 2.8 billion euros ($3 billion) and 1.25 billion Swiss francs ($1.31 billion) in bonds since last year, and will reportedly benefit from an interest rate on bonds in Japan about 1 percentage point lower than in the United States. It was also reported in February that Apple was planning to raise $6.5 billion in a corporate debt sale. The funds are used for corporate purposes such as repurchasing of common stock and payment of dividends through Apple's capital return program.

Tag: bonds

Top Rated Comments

WBRacing Avatar
74 months ago

/\ Has billions in his account, yet the ugliest guy in a suit I've ever seen....


More than just a suit, he represents all that is ugly in capitalism. Throw your money about then use and abuse your position to make, more money.

I'll be glad when he ******* off and finds another cash cow to feed off, leaving apple execs to focus on what is best for the company.
Score: 6 Votes (Like | Disagree)
thelookingglass Avatar
74 months ago

/\ Has billions in his account, yet the ugliest guy in a suit I've ever seen....


That's not uncommon among the super rich. :)

----------

Apple here in Japan SUCKS. My house is filled with Apple products - MBPs, iPhones, Retina iMac, Apple Tv, etc. They have ALL had physical damage issues. I don't believe there's a product from Apple in this country which doesn't have some level of blemish to scratch to marks straight out of the box. And Apple Japan customer service is worthless.


Well considering the Apple products in Japan are the same as the ones anywhere else in the world, that probably has little to do with Apple Japan, eh? :) Speaking of which, what's that got to do with Apple doing a bond issuance in Japan?
Score: 1 Votes (Like | Disagree)
fuchsdh Avatar
74 months ago

I'd like to know if the US government lowered the rate by 10% how many companies would bring cash back to the US and how much more money the US govt would have vs not have.

Would it be wise to allow this "bring the cash back" to the US for a span of 60-90 days without a huge penalty?


Problem is that we've done that in the past, which only encourages more of the same activity by companies. If you break your rules to get short term gains, you keep encouraging the same behavior you don't want companies to do.
Score: 1 Votes (Like | Disagree)
leo.andres.21 Avatar
74 months ago

ELI5 please?


Apple is planning to issue bonds in Japan, a low interest rate environment, meaning money is extremely cheap. Instead of using solely the cash they generated, they can use debt capital to reduce their overall cost. Debt interest also helps companies pay less in taxes.

Prudent debt is good for corporates.
Score: 1 Votes (Like | Disagree)
carlgo Avatar
74 months ago

I wonder if Apple is issuing the bonds on low interest, hoping that some day the US government will allow them to repatriate their oversea profits, without taking a huge tax hit, and pay it off.

Of course, my understanding of finance is incredibly limited, so I'm probably way off :D


Yes, that is what they are doing.
Score: 1 Votes (Like | Disagree)
rmatthewware Avatar
74 months ago
I wonder if Apple is issuing the bonds on low interest, hoping that some day the US government will allow them to repatriate their oversea profits, without taking a huge tax hit, and pay it off.

Of course, my understanding of finance is incredibly limited, so I'm probably way off :D
Score: 1 Votes (Like | Disagree)

Top Stories

16inchmacbookpromain

Kuo: New MacBook Pro Models to Feature Flat-Edged Design, MagSafe, No Touch Bar and More Ports

Thursday January 14, 2021 9:32 pm PST by
Apple is working on two new MacBook Pro models that will feature significant design changes, well-respected Apple analyst Ming-Chi Kuo said today in a note to investors that was obtained by MacRumors. According to Kuo, Apple is developing two models in 14 and 16-inch size options. The new MacBook Pro machines will feature a flat-edged design, which Kuo describes as "similar to the iPhone 12" ...
iphone x camera close

iOS 14.4 Will Introduce Warning on iPhones With Non-Genuine Cameras

Thursday January 14, 2021 8:07 am PST by
In the second beta of iOS 14.4 seeded to developers and public testers this week, MacRumors contributor Steve Moser has discovered code indicating that Apple will be introducing a new warning on iPhones that have had their camera repaired or replaced with aftermarket components rather than genuine Apple components. "Unable to verify this iPhone has a genuine Apple camera," the message will...
prototype iphone 12 pro

Prototype iPhone 12 Pro Shown Off in Photos

Wednesday January 13, 2021 3:39 pm PST by
Developer Giulio Zompetti, who often shows off prototype versions of Apple devices, today highlighted a prototype version of the iPhone 12 Pro. The iPhone 12 Pro is running an operating system called SwitchBoard, a nonUI version of the iOS 14 update that Apple uses internally. We've seen SwitchBoard on prototype devices before, as Apple uses it to test new features. Zompetti's prototype...
foldable iPhone concept feature

Apple Testing In-Display Fingerprint Sensor for iPhone 13, Foldable iPhone Also in the Works

Friday January 15, 2021 1:46 pm PST by
Apple has started "early work" on an iPhone that has a foldable display, according to a new report from Bloomberg's Mark Gurman. Though testing of a foldable iPhone has begun, Apple has not committed to releasing a device that has a foldable display. Development has not yet expanded beyond a display and Apple does not have full foldable iPhone prototypes in its labs. Like foldable...
Apple TV Ray Light 2 Triad

Apple Extends Free Apple TV+ Trials Until July

Friday January 15, 2021 10:50 am PST by
Apple is once again planning to extend its free Apple TV+ trial subscriptions, this time until July. When Apple TV+ launched in November 2019, Apple offered free Apple TV+ subscriptions to those who purchased a new Apple device in or after September 2019. Those free subscriptions were set to expire in November 2020, but in October 2020, Apple announced that it was extending free trials...
macbook pro 16 inch thunderbolt

Bloomberg: Next-Generation MacBook Pro to Offer Improved Displays, Faster Charging Over MagSafe

Thursday January 14, 2021 11:36 pm PST by
Following today's report from analyst Ming-Chi Kuo outlining major changes for the next-generation MacBook Pro models coming in the third quarter of this year, Bloomberg's Mark Gurman has weighed in with his own report corroborating some of the details but seemingly differing a bit on others. First, Gurman shares more details on the return of MagSafe charging to the MacBook Pro, indicating...
Hue module dimmer switch

Philips Hue Announces New Wall Switch Module, Dimmer Switch, and Outdoor Light Bar

Thursday January 14, 2021 3:11 am PST by
Philips Hue has announced a new wireless dimmer switch module that lets Hue bridge owners directly control the smart lighting from their standard wall switches. The new Philips Hue wall switch module is the ideal addition to any Philips Hue set up. Installed behind existing light switches, it allows users to turn their existing switch into a smart switch and ensures their smart lighting is...
pat gelsinger intel

Incoming Intel CEO Derides Company's Inability to 'Deliver Better Products' Than Apple's M1 Chip

Friday January 15, 2021 6:17 am PST by
Incoming Intel CEO Pat Gelsinger has said that the company must "deliver better products" than Apple, which he described as a "lifestyle company," and says that Intel's best days are "in front of it" (via The Oregonian). Speaking at an Intel all-hands meeting yesterday, Gelsinger derisively implied that Apple is merely a "lifestyle company," so Intel must be able to surpass its technology: ...
mac pro mini feature

Apple Working on Two New Mac Pro Desktops, One of Which Will Be Reminiscent of Power Mac G4 Cube

Friday January 15, 2021 10:23 am PST by
Apple is developing two versions of the Mac Pro to succeed the Mac Pro that was first released in December 2019, according to a new report from Bloomberg. The first updated Mac Pro is a direct successor to the current Mac Pro and it will use the same design. It may also be equipped with Intel processors rather than Apple silicon chips, and it could be one of the sole machines in the Mac...
pioneer carplay wc5700nex

The Best Apple-Related Accessories at CES 2021

Wednesday January 13, 2021 1:16 pm PST by
CES 2021 is taking place digitally this year, and it hasn't been as exciting as in past years because many vendors have opted out. That said, some companies are still showing off some interesting Apple-related accessories that are coming out this year and that will be of interest to Mac, iPad, and iPhone users. Subscribe to the MacRumors YouTube channel for more videos. Pioneer Wireless...