Apple Returns to Aussie Debt Market With Two-Part Bond Offering

  • IPhone maker marketing debt due in June 2020, January 2024
  • Pricing expected Friday; follows A$1 billion Coca-Cola deal

Apple Inc. is looking to build on its record Australian dollar bond sale from last year with a new two-part note offering that’s expected to price this week.

The iPhone maker is offering senior unsecured fixed-rate notes due in June 2020 at a yield premium of about 0.85 percentage point more than the swap rate, according to people familiar with the matter who asked not to be identified because they’re not authorized to speak publicly. It’s also marketing similar securities due in January 2024 at a 1.25 percentage point spread, the people said. 

A sale would be the latest in a series of non-U.S. transactions by the Cupertino, California-based company over the past two years as it expanded into a range of currencies including the euro, yen and Swiss franc. The proceeds from the new Aussie dollar deal may be used for a variety of general corporate purposes, including stock buybacks and dividend payments, the people familiar with the transaction said.

Record Offering

Apple last year issued A$2.25 billion ($1.6 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. Its offering this week follows a A$1 billion debut placement from beverage giant Coca-Cola Co., the largest such deal so far this year.

The offerings follow a dearth of new corporate bonds in Australia outside the financial services sector this year. While total issuance in the Australian bond market has increased 5.4 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 in 2016 before this week.

The Australian transaction is expected to price on Friday morning Sydney time and is being managed by Australia & New Zealand Banking Group Ltd., Deutsche Bank AG and Goldman Sachs Group Inc., the people familiar said.

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.