Apple issues three new $AUD bonds

03 June 2016

Apple Corporation stunned Australian markets last year with its inaugural bond issue in $AUD. This week, in further validation of the depth of the Australian bond market, it returned to Australia to issue three new tranches of bonds; a 4 year, a 7 year and a 10 year.

The initial guidance for the deal was 85bps, 125bps and 135bps over the respective swap rates. Final pricing saw the 4 year tranche come in tighter at 82bps over Swap and the 7 year and 10 year printing at the initial guidance rate. Deal sizes were as follows: 4 year, $650 million, 7 year $450 million, 10 year $325 million. Issue yields were; 4 year 2.676%, 7 year 3.36%, 10 year 3.61%.

Pricing was wider than Apple’s inaugural deal in August 2015 when the fixed 4 year tranche went at Swap + 65bps and the 7 year fixed tranche went at Swap + 110bps.

The 10 year deal appeared to be added after initial investor meetings and demonstrated the support for strong non-financial bond issuers. Apple is rated AA+ by Standard & Poor’s.

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