Apple 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.