AAPL’s rumored Taiwanese bond sale goes live, 30-year term with 4.15% yield

Reuters said last week that Apple was planning a $1B bond launch in Taiwan – home to iPhone assembler Foxconn – and it now reports that the sale has gone live.

Apple Inc sold a 30-year U.S. dollar bond in Taiwan at a yield of 4.15 percent, sources said on Tuesday, aiming to raise between $1 billion and $1.2 billion in the first issue of debt by the U.S. technology giant on the island that is home to major players in its supply chain.

The yield reflect the strength of Apple’s finances. Reuters notes that the 4.15% yield is well below that recently offered by other blue-chip multinationals like Intel on the island. The safer the bet, the lower the yield.

The bond is one of a number used by Apple to raise money to fund its stock buyback program and pay dividends while keeping its offshore stash of $233B out of the country to avoid the taxes that would be incurred by repatriating it. Other bond issues have taken place in the USA, Japan and Australia.

Apple has not yet officially confirmed the report.

Photo: globalriskinsights.com