Apple-BondsApple is set to issue bonds in Taiwan with the aim of raising $1 billion, according to Reuters.

The news signals the company's first attempt to sell bonds on the island where many of its supply chain partners operate, such as iPhone manufacturer Foxconn, contract chipmaker TSM, and camera lens producer Largan Precision.

The move would place Apple alongside a number of big global names that have already sold billions of dollars on Taiwan's debt market. In December, for example, Intel sold $915 million of 30-year bonds with yields of 4.7 percent. Sales of bonds by global brewer Anheuser Busch InBev with the same maturity shortly followed to the tune of $1.47 billion, yielding 4.9 percent for the company.

"Taiwan insurance companies don't have enough good (quality) fixed-income investment targets," an unnamed securities house official told Reuters. "But their funds continue to grow because in this low rate macro-environment, consumers prefer to buy financial products offered by insurance companies rather than park money in a bank deposit."

Apple appears ready to take advantage of the current liquidity of Taiwan's flush bond market, where long-term buyers of debt continue to seek creditworthy names in a race for higher yields. Cash-rich investors have reportedly made the island a haven for debt financing, and Apple's planned entrance into the market is likely to help the company secure solid partnership with its suppliers.

The U.S. dollar bonds will have a tenor of 30 years and be redeemable after the second year, sources told Reuters. Apple declined to comment, while the OTC exchange said it wasn't aware of any plan by Apple to issue bonds. However, bond issuers only need three days or less to notify the exchange before being listed.

Update: Apple will also be issuing bonds in Australia, and possibly Japan and Singapore, as part of broader plans to raise up to $4 billion in debt in the Asia-Pacific region.

Tag: Taiwan

Top Rated Comments

autrefois Avatar
79 months ago
Finding a new place to issue bonds. Phil Schiller was right, innovation is still alive and well at Apple.

It's also interesting to see just how much the Apple logo has evolved over the years to represent the styles of the times and the values of the company.








Attachment Image

Attachment Image

Attachment Image

Attachment Image

Attachment Image

Attachment Image
Score: 4 Votes (Like | Disagree)
HobeSoundDarryl Avatar
79 months ago
According to the aricle, Apple is not investing in the bond market. They are issuing bonds. Big difference.

I’m not sure why they’re doing this though. (I’m not an expert on bonds). Other than raising capital, what reason would a company issue bonds?
Guess: they need more cash there and there are not enough sales there to fund expansion or other business out of cash flow. Moving cash from some other country to there might have some kind of tax and the ability to pay what needs to be paid in some other country where cash is piled up may not be feasible (and or minimize taxes). So they do this, raise a billion dollars locally for basically handing out some pieces of paper and use the billion to fund operations there.

Or maybe someone in power there requires Apple to do some debt-based business with their cousin to be granted some special favor.

Or worse.

Apparently Apple does have a pile of cash. But they are also taking on debt at various places around the world. Why? And how does one reconcile that? It's probably something like I just described- taxes, local "you scratch my back..." politics or similar. In a perfect world, money piled up anywhere could be used anywhere else without a bunch of hands behind the scenes doing a shake-down. In this world though, the back-room wheeling & dealing thrives (as does the bankers pressing everyone and every kind of entity to take on debt)... so seemingly illogical actually makes the most sense when you can see all of the details.
Score: 2 Votes (Like | Disagree)
BruceEBonus Avatar
79 months ago
Have Apple not heard of lottery scratch cards? They could have invested the same money in those instead? OK they're a helluva high risk but the profits come fast! :D
Score: 1 Votes (Like | Disagree)
Rocketman Avatar
79 months ago
If it is oversubscribed by more than 4x, maybe they will issue $2B and at a lower rate than 4.7%. 2 year callable is quite interesting. They seem to be anticipating a substantial change in US tax law.

cite:
linky 2
Score: 1 Votes (Like | Disagree)
Bonte Avatar
79 months ago
You can't just move cash. You can pay debt easily. This is tax avoidance. Smart.
Apparently there is no US tax if Apple imports the cash to pay off debt, Taiwan could have a similar law. Indeed a smart move.

https://next.ft.com/content/b1f867a4-b703-11e2-a249-00144feabdc0
Score: 1 Votes (Like | Disagree)

Popular Stories

home app ios 16

Apple Confirms iPad Will No Longer Be Supported as a Home Hub in iOS 16

Wednesday June 22, 2022 12:38 pm PDT by
The iPad will no longer be able to be used as a home hub following the launch of iOS 16, iPadOS 16, macOS Ventura, and the HomePod 16 software this fall, Apple confirmed today. As discovered in iOS 16 code by MacRumors contributor Steve Moser, Apple says that the iPad will no longer be supported as a home hub. This information will be displayed in the Home app after updating to iOS 16.A home ...
apple ar headset concept 2

Apple CEO Tim Cook Hints at AR/VR Headset: 'Stay Tuned and You'll See What We Have to Offer'

Wednesday June 22, 2022 6:34 pm PDT by
CEO Tim Cook this week did an interview with China Daily, where he once again commented on on the future of augmented reality and hinted at Apple's work on an AR/VR headset. Render via designer Ian Zelbo Cook said that Apple is excited about the opportunities available with augmented reality, which is not too far off from prior comments that he's made, but he went on to say that people should ...
customize wallpaper setting ios 16

iOS 16 Beta 2 Tidbits: New Wallpaper Colors, Backup Over LTE, SMS Filtering and More

Wednesday June 22, 2022 2:16 pm PDT by
Apple today seeded the second betas of iOS 16 and iPadOS 16 to developers for testing purposes, and the new betas introduce new features and refine some of the changes that Apple made with the first iOS 16 release. Subscribe to the MacRumors YouTube channel for more videos. Lock Screen Photo Wallpaper Customization When customizing a photo on the Lock Screen, there are two new DuoTone and...
Shazam Music Recognition Control Center

iPhone's Built-In Music Recognition Feature Syncs With Shazam App on iOS 16

Tuesday June 21, 2022 7:37 am PDT by
Since the release of iOS 14.2 in 2020, the iPhone has included a built-in Music Recognition feature in Control Center powered by Shazam. And with iOS 16, and also the iOS 15.6 beta, the feature has received a small but useful upgrade. As noted by Twitter user @someone_andrew, songs identified with Music Recognition in Control Center finally sync with the Shazam app. It also remains...
2022 back to school apple

Apple Launches 2022 Back to School Offer: Up to $150 Gift Card With Mac or iPad

Friday June 24, 2022 5:08 am PDT by
Apple today launched its annual "Back to School" promotion for college/university students in the United States and Canada. This year's promotion offers a free Apple gift card with the purchase of an eligible Mac or iPad, rather than free AirPods like last year. Apple is also offering students 20% off AppleCare+ plans during the promotion. Apple is offering a $150 gift card with the purchase ...
ios 16 lock screen feature2

Apple Seeds Second Betas of iOS 16 and iPadOS 16 to Developers

Wednesday June 22, 2022 10:07 am PDT by
Apple today seeded the second betas of upcoming iOS 16 and iPadOS 16 updates to developers for testing purposes, with the updates coming two weeks after Apple unveiled the new software at WWDC and released the initial betas. Registered developers can download the iOS and iPadOS 16 profiles from the Apple Developer Center, and once installed, the betas will be available over the air. Given...
apple ar headset concept 1

Apple Rumored to Announce 'Game-Changer' AR/VR Headset in January 2023

Friday June 24, 2022 2:52 am PDT by
Apple is "likely" to announce its long-rumored mixed-reality headset as soon as January 2023, Apple analyst Ming-Chi Kuo has reiterated. Concept render based on purported leaked information by Ian Zelbo In a detailed post on Medium, Kuo explained that Apple's headset will be a "game-changer" for the augmented-reality and virtual-reality market. Describing some of the headset's...