{"id":54172,"date":"2025-05-05T18:24:17","date_gmt":"2025-05-05T16:24:17","guid":{"rendered":"https:\/\/www.apfelpatient.de\/?p=54172"},"modified":"2025-05-05T18:24:47","modified_gmt":"2025-05-05T16:24:47","slug":"apple-finances-share-buyback-with-fresh-bond-money","status":"publish","type":"post","link":"https:\/\/www.apfelpatient.de\/en\/news\/apple-finanziert-aktienrueckkauf-mit-frischem-anleihegeld","title":{"rendered":"Apple finances share buyback with fresh bond money"},"content":{"rendered":"

Apple has regularly issued corporate bonds to raise capital in the past, even though the company itself has substantial cash reserves. Now a new step may be imminent: Apple could sell new bonds today. The goal seems clear: additional liquidity for a $100 billion share buyback program. For investors, analysts, and you, this is a clear sign of Apple's financial strategy.<\/strong><\/p>\n\n\n\n

According to recent media reports, Apple is planning to sell corporate bonds for the first time since 2023. According to information obtained by Bloomberg, citing a person familiar with the matter, the sale is expected to take place today. These are so-called investment-grade bonds, which could be issued in multiple installments. For Apple, this would be a classic capital-raising measure that would also create a financial foundation for its newly announced share buyback program.<\/p>\n\n\n\n

Apple wants fresh capital \u2013 despite high cash reserves<\/h4>\n\n\n\n

According to its latest quarterly report, Apple has approximately $28 billion in cash and cash equivalents. Nevertheless, the company is resorting to selling bonds. The reason: Corporate bonds offer a relatively inexpensive way to raise fresh money quickly and on a large scale \u2013 without issuing new shares or becoming more dependent on banks. Unlike raising capital through shares, Apple does not dilute the stake of existing shareholders through this step. This makes bonds a particularly attractive financing instrument for a company like Apple.<\/p>\n\n\n\n

Details on the planned bond sale<\/h4>\n\n\n\n

The exact terms of the deal have not yet been made public. What is known, however, is that Apple apparently plans to issue the bonds in up to four installments. The longest portion of this new issue will have a term of ten years and will be offered at an interest rate approximately 0.7 percent above the comparable US Treasury bond. This type of issue is investment-grade bonds \u2013 i.e., securities with a high credit rating. Investors consider them a relatively safe investment with a predictable return. While government bonds generally offer even greater security, Apple's creditworthiness brings it close to that. The transaction is expected to be supported by several major banks: Barclays, Bank of America, Goldman Sachs, and JPMorgan Chase & Co. are reportedly responsible for handling the bond sale.<\/p>\n\n\n\n

What is the planned issue volume?<\/h4>\n\n\n\n

Although the exact amount Apple intends to raise has not yet been confirmed, investment bankers estimate a total volume of approximately $35 to $40 billion on the market. A significant portion of this is expected to come from technology companies \u2013 and Apple is likely to play a leading role. A bond of this size would not be unusual for a single company like Apple. Apple has raised similar amounts through the capital markets several times in the past.<\/p>\n\n\n\n

Purpose of the bonds: $100 billion buyback program<\/h4>\n\n\n\n

One obvious use for the capital is the new share buyback program Apple announced in its second-quarter 2025 earnings report. The board of directors has authorized up to $100 billion to repurchase its own common stock. Such a buyback typically has a positive effect on the share price, as it reduces the supply of shares on the market while signaling the company's confidence in its financial position.<\/p>\n\n\n\n