Apple Said to Weigh Aussie Bond Return as Coca-Cola Makes Debutby
IPhone Maker considers second foray after record deal in 2015
Coca-Cola sale is 2016’s biggest from a non-financial company
Apple Inc. is said to be considering a return to Australian bonds following its record offering last year, taking advantage of a market that on Wednesday welcomed a A$1 billion ($726 million) debut transaction from drinks producer Coca-Cola Co.
The iPhone maker has hired Australia & New Zealand Banking Group Ltd., Deutsche Bank AG and Goldman Sachs Group Inc. for a potential deal in the Australian currency, according to two people familiar with the matter who asked not to be identified because they’re not authorized to speak publicly. It would be launched in the near future, subject to market conditions, they said.
The computing giant last year issued A$2.25 billion of notes in the largest-ever transaction Down Under by a company outside the financial-services industry, selling a combination of four-year and seven-year securities. The Coke offering is the biggest non-financial corporate deal since then and was snapped up by Australian bond investors who have been largely starved of such deals in 2016.
The world’s largest soft drink manufacturer sold A$450 million of four-year notes at a yield of 0.67 percentage point more than the swap rate and A$550 million of eight-year debentures at a 1.05 percentage point spread. That deal was managed by ANZ, Deutsche Bank and Royal Bank of Canada.
While total issuance in the Australian bond market has increased 4 percent compared with the same point last year, sales have been dominated by banks, other financial firms and government-related entities, according to data compiled by Bloomberg. Hyundai Motor Co., Korea National Oil Corp. and Port of Brisbane are among the few non-bank companies to have raised funds in the market this year.
Apple’s foray into Australia is part of a strategy that’s seen the Cupertino, California-based firm expand its borrowings in currencies from euros and yen to pounds and Swiss francs. Until 2014, it had only issued bonds in U.S. dollars.
Apple is also planning to sell 30-year U.S. currency-denominated bonds in Taiwan, according to people familiar with the matter. Its first offering in the east Asian country has a planned volume of $800 million to $1.2 billion and is being marketed at a yield of about 4.2 percent, the people said.
Carolyn Wu, a Beijing-based spokeswoman for Apple, declined to comment on potential bond issues by the company.