Apple has announced its first bond issue in nearly two years on Tuesday, May 6, 2025, planning to raise $4.5 billion. The funds will primarily finance cash returns to shareholders through share buybacks and repay outstanding debt.
Bond Details
According to an SEC filing, the issue includes four tranches maturing in 2028, 2030, 2032, and 2035. Interest rates are set at 4%, 4.2%, 4.5%, and 4.75% respectively. Strong investor demand pushed total orders for Apple's sale to $10 billion.
Context and Purpose
Apple has $8 billion in debt maturing from May through November. The company sees smart borrowing as a way to fund buybacks and dividends, keeping its cash pile intact for investments in services, wearables, and R&D.