Apple's First Bond Sale in Japan Raises $2 Billion
Posted June 4, 2015 at 2:24pm by iClarified
Apple has raised 250 billion yen ($2 billion) in its first ever Japanese bond sale, according to a filing with the SEC. It was previously reported that Apple was considering issuing 200 billion yen ($1.62 billion) in bonds as soon as June.
Despite having plenty of cash, Apple still issues bonds so that it can procure funds at low interest rates, which helps create a tax shield that generates shareholder value. Much of Apple's cash is held overseas, so the company borrows money to fund its stock buyback program and more. Apple just recently issued $6.5 billion in bonds in February.
The bond has an extremely low interest rate of .35%, paying semi-annually on June 10 and December 10. The bond matures on June 10, 2020.
Read More via AP News
Despite having plenty of cash, Apple still issues bonds so that it can procure funds at low interest rates, which helps create a tax shield that generates shareholder value. Much of Apple's cash is held overseas, so the company borrows money to fund its stock buyback program and more. Apple just recently issued $6.5 billion in bonds in February.
The bond has an extremely low interest rate of .35%, paying semi-annually on June 10 and December 10. The bond matures on June 10, 2020.
Read More via AP News